
Nifty Bank opened today’s session with a gap-up at 51,640 versus yesterday’s close of 51,608. It inched higher after opening and is now at 51,750, up 0.25 per cent so far today.
The advance/decline ratio is 8/3. The gainers today are led by IndusInd Bank by advancing 3.7 per cent. Kotak Mahindra Bank is the top loser by falling about 1 per cent so far today.
Nifty PSU Bank has moved up 0.5 per cent whereas Nifty Private Bank is flat. So, broadly, the public sector banks are outperforming their private peers.
Nifty Bank futures
Although the underlying index opened higher today, Nifty Bank futures (March contract) began today’s session slightly lower at 51,650 against yesterday’s close of 51,665. It is now trading around 51,870, up 0.4 per cent so far today.
The broader trend is bullish and so, there is a good chance for a rally. Nifty Bank futures (March) can rise to 52,500 before expiry. Resistance above 52,500 is at 52,800.
In case there is a decline, the contract can find support at 51,500. A breach of this might turn the intraday trend bearish. In this case, Nifty Bank futures can extend the fall to 51,000 and 50,800.
One thing traders should keep in mind is that the recent rally has been sharp. This means, there might be a corrective decline. Especially considering that the March contracts expires tomorrow (March 27). So, trade plan should be made accordingly.
Trading strategy
Buy Nifty Bank futures (March) only if it decisively breaks out of 52,000. Target and stop-loss can be 52,500 and 51,800 respectively.
Supports: 51,500 and 51,000
Resistance: 52,500 and 52,800
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