Bank Nifty opened today’s session at 47,341 versus yesterday’s close of 47,282. While the index made a high of 47,468.70 in the early trade, it made a U-turn and has declined to the current level of 47,285.
The advance/decline ratio of the index stands at 4/8. ICICI Bank, up 1 per cent, is the gainer whereas Punjab National Bank, down 2.75 per cent, is the top loser.
Broadly, the private sector banks are performing better than the public sector banks so far today. Thus, Nifty Private bank is up 0.2 per cent but Nifty PSU bank is down 1.8 per cent.
The price action of Bank Nifty shows that it is now trading in a narrow range and the probability of a rally and a decline from the current level is nearly the same.
Bank Nifty futures
Bank Nifty March futures began today’s session 47,600 as against yesterday’s close of 47,527. After marking an intraday high of 47,684.30, it declined and is now hovering around yesterday’s closing price.
The contract is now stuck within the 47,400-47,700 range. Only a breach of either of these levels will give us a clue on the direction of the next swing in price.
If Bank Nifty futures fall below 47,400, it can drift further lower to 47,000, a support. Subsequent support is at 46,750.
On the other hand, if the contract breaks out of 47,700, it can extend the upswing to 48,000, a barrier. Immediate resistance above 48,000 is at 48,320. The contract should surpass 48,320 in order to turn the trend bullish.
Trading strategy
Stay on the fence and initiate fresh trade along the direction of the break of the range 47,400-47,700.
Supports: 47,400 and 47,000
Resistance: 47,700 and 48,000