Bank Nifty 21st Jan 2016
Bank Nifty Minor Trend is oversold. Bank Nifty Major Trend is nearing a very important support of 14100-14500 (Bank Nifty spot levels mentioned) As per our Bank Nifty Prediction / Bank Nifty analysis we expect Bank Nifty to make a medium term bottom between 14100-14500 (give or take a few points here and there) and then begin a rally towards 16335. So those traders and investors who are stuck in Public sector banking and private sector banking stocks must look to either average their positions or buy into sector leader stocks like IDBI Bank and hold for targets of 16335 or get out when your average prices do come. Please note this is not a sector to add in the medium term. There are way too many concerns in the Banking sector as a whole and the hit that banks will take on account of competition by payment wallets will be know only in the next 2-3 q going forward (hit will be there but the magnitude of the impact needs to be seen. Hence we do not recommend to buy into Banking sector, those who are stuck just average at lower levels and then get out of it. On all dips rather get into agro commodities like sugar stocks like Bajaj Hindustan, EID Parry and Renuka Sugar. We will also look to buy some other agro commodities stocks like coffee but still the bottom is not done or may be some more time is pending for that sector to start its rally.
Bank Nifty constituents IDBI Bank looks good and has a good support around 52-50 Nse spot levels mentioned. Any dips towards 52-50 area short term positional traders can look to enter the stock and gain from the subsequent bullish move. Icici Bank, Punjab National Bank are looking very weak please avoid them.
Good Trading To You!