Nifty Bank opened today’s session with a gap-down at 47,943 versus yesterday’s close of 48,114. It is now hovering around 48,270, up 0.3 per cent.

The advance/decline ratio stands at 7/5, giving the index a slight bullish bias. State Bank of India, up 2.8 per cent, is the top gainer whereas The Federal Bank, down 1 per cent, is the top loser.

Nifty PSU Bank is up 1.8 per cent whereas Nifty Private Bank is flat so far today. So, broadly, the public sector banks are outperforming their private peers.

Nifty Bank futures

Nifty Bank futures (March contract) opened today’s session lower at 48,250 against yesterday’s close of 48,396. It is now trading at 48,550, up 0.3 per cent.

The contract bounced off a support at 48,150, which is a crucial level. Although the recent trend has been bearish, the price level of 48,150 can arrest the decline.

However, this does not automatically lead to a bull trend as there are resistance levels ahead for Nifty Bank futures.

The nearest notable resistance is at 48,800 where a falling trendline coincides. Above this level, the nearest barrier is at 49,200.

Trading strategy

Nifty Bank futures is trading between a key support and resistance levels. Hence, the next leg of trend appears uncertain. We recommend staying out.

Supports: 48,150 and 47,800

Resistance: 48,800 and 49,200