The Bank Nifty opened the week at 44,253 points compared to Friday’s close of 44,231 points. It rose after opening and is now hovering around 44,310 points, up 0.2% today. Therefore, the index is testing resistance within a wide sideways range.
The advance/decline ratio is 8/4, supporting the bullish view. Punjab National Bank was among the top gainers, up 1.8%. ICICI Bank was the biggest loser, with shares down 0.4 percent.
Public sector banks outperformed private sector banks – Nifty PSU Banks Index rose 0.75% while Nifty Private Banks Index gained 0.25%.
Also Read | BL GURU’s Nifty and Bank Nifty forecast for the week of 28 August-1 September 2023
Pretty Bank Futures
The August contract opened higher today at 44,299, compared with Friday’s close of 44,222. The contract is currently trading around 44,340 after hitting a high of 44,378.
The contract continues to trade within a wide sideways range of 43,870-45,000. Hence, the next leg of the trend cannot be determined until Bank Nifty futures move out of this range.
As things stand, the chances of a bounce seem high in this zone. But there is resistance at 44,360. If this level is breached, the contract is likely to rally to 45,000. On the other hand, if the barrier remains firm, the contract could fall towards 44,000.
Trading straregy
With resistance at 44,360, traders can wait and go long after this level expires. The target and stop loss levels for this trade are 44,900 and 44,100 respectively.
support: 44,000 and 43,870
resist: 44,360 and 44,900
