Bank Nifty prediction today — June 6, 2024: Bulls in the driving seat; consider longs

Bank Nifty began today’s session with a gap-up at 49,426 versus yesterday’s close of 49,055. It rallied after opening and is now hovering around 49,620, up 1.1 per cent.

Supporting the bullish inclination, the advance-decline ratio of Bank Nifty currently stands at 11:1. State Bank of India, up 5.2 per cent, is the top gainer whereas AU Small Finance Bank, down 0.1 per cent, is the sole stock in the index that has lost.

The public sector banks seem to be outperforming private peers so far today. Nifty PSU Bank index has gained 4.6 per cent whereas Nifty Private Bank is up by 0.5 per.

Bank Nifty futures

Bank Nifty futures (June contract) opened today’s session higher at 49,335 against yesterday’s close of 49,117. It has advanced further and is currently quoted at 49,700, up 1.2 per cent so far today.

The contract will most likely touch 50,000 today as the sentiment has been positive. If Bank Nifty futures surpasses 50,000, it can rise to 51,000 quickly.

On the other hand, if the contract declines, it can find support at 49,200 and 49,000. Even if there is a downward reversal, a fall below 49,000 is unlikely today.

trading strategy

Buy Bank Nifty futures now at 49,700 and add longs if the price dips to 49,300. Place stop-loss at 48,900. When the contract surpasses 50,000 raise the stop-loss to 49,500. Tighten the stop-loss further to 50,000 when the contract hits 50,500. Exit at 51,000.

Supports: 49,200 and 49,000

Resistance: 50,000 and 51,000

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