Bank Nifty began today’s session higher at 49,083 versus yesterday’s close of 48,752. It moved up further after opening and is now hovering around 49,260, gaining 1 per cent so far today.

All 12 stocks in Bank Nifty have appreciated, indicating a strong bullish inclination. Bank of Baroda, the top gainer, up 3.4 per cent, is followed by AU Small Finance Bank and Punjab National Bank, up 3 per cent each.

Nifty PSU Bank has shot up 3.2 per cent, whereas Nifty Private Bank is up 0.8 per cent. Therefore, broadly, the public sector banks are experiencing higher buying pressure as compared to the private banks.

Bank Nifty futures

Bank Nifty futures (January contract) opened today’s session with a gap-up at 49,300 against yesterday’s close of 48,892. It gained further after opening and is now trading at 49,400, up 1.1 per cent.

The chart shows that the contract has moved above a resistance at 49,200. So, the likelihood of further gains today is higher.

From the current level of 49,400, resistance levels are at 50,000 and 51,000.

On the other hand, if Bank Nifty futures decline from the current level, 49,200 can offer some support. A breach of this can drag the contract to 48,650, a support.

Trading strategy

Buy Bank Nifty futures now at 49,400 and on a dip to 49,200. Place a stop-loss at 48,650. When the contract rises to 50,000, revise the stop-loss to 49,300. Tighten the stop-loss further to 50,000 on a rally to 50,500. Book profits at 51,000.

Supports: 49,200 and 48,650

Resistance: 50,000 and 51,000