Nifty Bank opened today’s session considerably higher at 54,891 versus last week’s close of 54,290. It is now hovering around 55,180, up 1.7 per cent.
All 12 stocks in the index are in the green, indicating a strong upward bias. The pack is led by AU Small Finance Bank and IndusInd Bank, which have gained 5.5 per cent each so far.
Nifty Private Bank and Nifty PSU Bank have gained 2.5 per cent and 1.7 per cent, respectively and are the top performing sectors today. So, overall, banking stocks seem to be in focus.
Nifty Bank futures
Nifty Bank futures (April) began today’s session at 54,641 against last week’s close of 54,201. It is now trading around 55,180, up 1.8 per cent.
Given the current price action, Nifty Bank futures looks set to extend the rally. The nearest potential resistance levels are at 55,500 and 55,800.
In case there is a dip, it is only likely to be a corrective one. Such a downswing can be arrested at 55,000 and 54,750, which are considerable intraday supports.
That said, a breach of 54,750 can turn the intraday outlook weak. In such a scenario, Nifty Bank futures can drop to 54,000-54,300 support band. A decline beyond these levels is unlikely.
Trading strategy
Buy Nifty Bank futures at 55,150 and 54,800. Target and stop-loss can be 55,800 and 54,700, respectively.
The rally to 55,800 might take a couple of sessions. So, traders can consider carrying this trade over to next sessions until either target or stop-loss is triggered.
Supports: 55,000 and 54,750
Resistance: 55,500 and 55,800
Published on April 21, 2025
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