Bank Nifty began today’s session higher at 51,759 versus yesterday’s close of 51,704. It advanced further after opening and is now hovering around 51,990, up nearly 0.6 per cent.

Bank Nifty is one of the top gaining sectoral indices at the end of the first hour of today’s trade. Supporting the bullish bias, the advance/decline ratio stands at 8/4. Axis Bank, up 1.4 per cent, is the top gainer whereas Bandhan Bank, down 1.5 per cent, is the top loser.

Private banks have been outperforming the public sector banks so far today. Therefore, Nifty Private Bank is up nearly 0.5 per cent compared to Nifty PSU Bank’s gain of 0.2 per cent.

Bank Nifty futures

Bank Nifty futures (June contract) opened today’s session higher at 51,800 against yesterday’s close of 51,751. It is currently trading at 52,100, up 0.7 per cent.

The contract has clearly breached the barrier at 51,850. Thus, the probability of further rise from the current level has gone up significantly.

Bank Nifty futures is expected to touch 53,000, a resistance, soon. Above this, the potential resistance is at 53,500.

On the other hand, if the contract falls from the current level, it can find support at 52,000 and 51,850. A decline below the latter is unlikely to occur today.

Given the prevailing conditions, traders can consider long positions.

Trading strategy

Buy Bank Nifty futures now at 52,100. Add longs if the price moderates to 51,900. Place stop-loss at 51,750.

When the contract rises to 52,500, revise the stop-loss to 52,100. Tighten the stop-loss further to 52,500 when the price hits 52,800. Book profits at 53,000.

Supports: 52,000 and 51,850

Resistance: 53,000 and 53,500

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