Bank Nifty 19th Jan 2016
Bank Nifty has been one of the weakest links in Nifty constituents and Bank Nifty has been falling like nine pins and making lows almost every single trading day. Such structures which are making classic lower tops and lower bottom must not in one’s portfolio. The problem is Janta has bought into Banking sector and now the prices are much lower from the entry prices in some cases even 40 percent lower in the past 30 trading days or so. Anyways there is some good news for those who are stuck in this sector. Bank Nifty has a very important support around 14100-14500 Bank Nifty spot levels mentioned and around this area only the traders who are stuck in trading / positional longs must look to average buying positions as we do not see any significant fall in Bank Nifty beyond 14100 spot levels in the near term. Longer term these stocks and Bank sector is very bad and the idea to average around support is only to get out around cost price. As per our Bank Nifty prediction / Bank Nifty analysis we do not see any major out performance from Banking Sector and this sector is expected to be a drag on the Nifty 50 not the other way round so on a bounce back one should get out of this sector totally.
Last year when we recommended and told out PAS clients (Portfolio advisory services) that you must totally avoid this sector as this will be leading the downside. Most HNI’s said what the hell is this guy talking. Today the same very people are so happy that they are saved from one of worst carnage in Banking sector. So bottom line if you want to be happy please avoid the banking sector, please do not think Axis Bank, Icici Bank , Yes Bank is any better than Bank of India, State Bank of India or Punjab National Bank all of them have some serious competition in the form of payment wallets and as of right now most of the analyst are not even talking about it.
If you see what some of the best investors including Mr. Buffet says always “look for consumer trends” the consumer trend is surely shifting in favor of payment wallets thanks to the massive discounts and cash backs that most of them are offering and extreme easy of use vs the internet banking models. These payment wallets will surely impact the Banking sectors retail fee income and it is going to be huge. So please avoid this sector for now and if stuck average lower around 14100-14500 Bank Nifty spot levels and get out when it comes near your average price.
Good Trading To You!