Nifty Bank index began today’s session with a gap-down at 55,598 versus last week’s close of 55,750. It slipped further after opening and is currently hovering around 55,555, down nearly 0.4 per cent.
The advance/decline ratio stands at 9/3, which gives the index a bullish bias. Punjab National Bank (up 2.5 per cent) and Bank of Baroda (up 2 per cent) are the top gainers.
On the other hand, the three stocks in the index that are in the red so far today are the major private banks – HDFC Bank (down 1.4 per cent), ICICI Bank (down 0.9 per cent) and Kotak Mahindra Bank (down 0.4 per cent).
Consequently, Nifty Private Bank is down 0.15 per cent. The public sector banks are broadly outperforming their private peers and Nifty PSU Bank is now trading with a gain of 1.5 per cent.
Nifty Bank futures
Despite the underlying Nifty Bank opening today’s session with a gap-down, the June futures of the index opened marginally higher at 56,100 versus Friday’s close of 56,076. But it fell after opening and is now trading at 55,900, down 0.3 per cent.
The chart shows that Nifty Bank futures (Jun) is moving across the price band of 55,500-56,200 over the past week. Also, the price action over the past three weeks shows that the contract has been oscillating in a broader range of 55,000-56,200.
Therefore, there is no certainty about the next leg of trend. Nevertheless, the price action hints at a bullish bias and so, the probability of Nifty Bank futures breaking out of 56,200 is higher than it slipping below the support at 55,500 or 55,000.
Trade strategy
Stay on the fence and buy Nifty Bank futures (Jun) if it breaks out of 56,200. Target and stop-loss for the near-term can be 57,000 and 55,900 respectively.
Supports: 55,500 and 55,000
Resistances: 56,200 and 57,000
More Like This
Published on June 2, 2025
Source link
