Nifty Bank held today’s session with a gap up to 51,640 against the end of yesterday’s 51,608. It was higher after the opening, and now it’s 51,750, and today it’s an increase of 0.25%.
The advance/decay rate is 8/3. Gaines today is led by Indusind Bank by moving forward by 3.7%. Kotak Mahindra Bank is the top loser with a drop of about 1% so far today.
Nifty PSU Bank rose 0.5%, while Nifty Private Bank is flat. Therefore, roughly, public sector banks are superior to their individual peers.
A clever bank futures
The underlying index has opened higher than today, but Nifty Bank Futures (March Compript) has started today’s session slightly lower at 51,650 against the end of yesterday’s 51,665. Currently trading around 51,870, an increase of 0.4% today.
The broader trend is bullish, so there is a good chance of meetings. Nifty Bank Futures (March) could rise to 52,500 before it expires. Resistance exceeding 52,500 is 52,800.
If there is a decline, the contract can find support at 51,500. Violation of this may undermine mid-day trends. In this case, clever bank futures could extend the decline to 51,000 and 50,800.
One thing traders should keep in mind is that recent rallying is keen. This means there may be corrective decline. In particular, consider that your March contract will expire tomorrow (March 27th). Therefore, trade plans should be created accordingly.
Trading strategy
If you buy Nifty Bank Futures (March), you will be a decisive escape out of 52,000. The target and stop losses are 52,500 and 51,800, respectively.
Support: 51,500 and 51,000
Resistance: 52,500 and 52,800
