Bank Nifty Surges to New Heights, Anticipating Continued Uptrend

On December 14, 2023, the Bank Nifty index started the trading day with a roaring leap, opening with a significant gap-up. Observers noted a robust opening at 47,567.65, a sharp rise from the previous day's close of 47,092.25, setting the stage for a potential bullish trend. As the day progressed, the index saw an ascension to 47,780, reflecting a 1.5% increase.

Indicators of a Bullish Market

In an unmistakable sign of market optimism, every one of the 12 stocks comprising the Bank Nifty index was bathed in green. Leaders of the pack included IndusInd Bank and ICICI Bank, both appreciating by 2.2%, signalling a particularly strong performance. Analysis of sectoral performance showed that private sector banks had carved out a noticeable lead, with the Nifty Private bank index climbing by 1.6%, outstripping the Nifty PSU bank index's more modest progress of 0.6%.

Bank Nifty Futures Showcase Strong Momentum

Bank Nifty futures, with their eyes set on the December expiry, mimicked the broader index with a robust opening at 47,652.20, a stride ahead of the previous session's closing number of 47,396.25. Not long into the trading day, they were observed orbiting the 48,000 mark. The day's early movements, including a spike to 48,200, hinted towards a bullish trend with a fresh breakout on the charts. Even though a slight ebb to the vicinity of 47,850 was noted, market analysts projected a swift resumption of the upward trajectory.

Should the advance persist, a climb towards 48,500 was forecast, before encountering possible resistance. Analysts foresaw additional resistance near 48,800. On the flip side, a dip below 47,900 could potentially trigger a retreat to the 47,700 range.

Trading Strategy Amidst Rising Bank Nifty

For those eyeing the market's movements, a strategy was formulated to capitalize on the promising trend. Traders were advised to initiate buy positions for Bank Nifty futures at 48,000, considering additional purchases if a dip to 47,850 occurred. The suggested target and stop-loss were set at 48,500 and 47,680, respectively. Support levels were established at 47,850 and 47,700, with resistance predicted at 48,200 and 48,500.

BankNifty, Futures, Uptrend