Bank Nifty began today’s session at 50,842 versus yesterday’s close of 50,860. It appreciated after opening and is now hovering around 51,150, up nearly 0.6 per cent.

The advance/decline ratio of Bank Nifty is currently at 10/2. IDFC First Bank and IndusInd Bank, up 1.8 and 0.8 per cent, are the top gainers. AU Small Finance Bank and The Federal Bank, down 0.4 and 0.25 per cent respectively, are the losers.

Nifty Private Bank is up 0.5 per cent whereas Nifty PSU Bank is up 0.25 per cent. So, broadly, the private banks are outperforming their public sector peers so far today.

Bank Nifty futures

Bank Nifty futures (January contract) opened today’s session at 51,290 against yesterday’s close of 51,286. It has now moved up to 51,460, up 0.3 per cent.

There is a resistance ahead at 51,600. If Bank Nifty breaks out of this level, it can extend the upswing to 52,250, a resistance. Subsequent barrier is at 52,720.

In case the contract falls off the barrier at 51,600, it can retest the support at 51,000. A breach of this level can trigger a fall to 50,400, a potential support.

Trading strategy

Go long on Bank Nifty futures if it surpasses 51,600. Target and stop-loss can be 52,250 and 51,250 respectively.

Supports: 51,000 and 50,400

Resistance: 51,600 and 52,250