Bank Nifty 13th Jan 2016
Bank Nifty had another bad day today and this Index is showing a classic bearish and underperformance chart pattern. Just one look at the charts and most traders and investors will know that this Index is not for long only rather it will be one of the best short selling candidates post the final tezi cycle as we see significant under performance from Bank Nifty and even within this sector they will hardly be any stock with possibly the exception of IDBI Bank and HDFC Bank that could outperform. Most rather almost all of the stocks within this sector have been consistently making classic lower tops and lower bottom formations and each and every time there is a pullback the pullback has been consistently failing post making a lower top. Rest all the banking stocks which includes public sector banking and private sector banking stocks as per our analysis will be underperforming the Nifty 50 benchmark index so we do not feel that buying or trying to find a bottom in Banking stocks will make any sense at all.
Within this sector private sector banking results which are around to be reported later this month (Q3FY16 numbers) we will see Icici Bank, Axis Bank, State Bank of India report some really disastrous numbers. Their asset quality is going to go for a toss, retail fee incomes are going to come down and when there are so many problems in this sector we recommend to totally avoid this sector as a whole. In our PAS (Portfolio Advisory services) we have recommended a total skip on this sector. As per our analysis the worst is still not built in the price and we could see sharp price wise panics around or just post the Q3FY16 results hence if you are long then caution is advised.
Good Trading To You!