Bank Nifty 23rd Nov 2015
Bank Nifty Minor Trend is oversold. Bank Nifty Major Trend is sideways. Overall we reiterate our view to avoid this sector and use surplus funds or move surplus funds or funds which you have allocated to banking sector both private sector banking and public sector banking to sugar sector and primarily Bajaj Hindustan, Renuka Sugar and Eid Parry. We see significant outperformance from sugar sector rather we feel it will be the best performing sector over the next 24 months and we don’t feel in the same time period Banking Stocks both private sector banks and public sector banks will give any significant returns , at least till Diwali 2016 we are net net expecting a flat or sideways price movement hence it wont make any sense to park money in banking stocks. The more we look into balance sheets and astro cycle for Banking Sector the more problems become visible and I am very sure our dear friends from the analyst fraternity will surely notice the irregularities and structural problems within banking sector soon so when they do realize the significant asset quality problems and retail fee income diminishing downgrades will follow (there is still sometime for that to happen as of today there is a hope trade being played out in Banking sector and we do not hope we act on whatever bullish or bearish does not matter it is one hundred times better than just hoping things will change on the balance sheet front)
Axis Bank Share price did break the 460 mark today but some of the criteria needed for a fats fall are still pending. Axis bank has immediate resistance at 489-492 Nse spot levels mentioned. We do not see Axis Bank outperforming and see significant weakness in the stock price going forward.
IDBI is looking good on the charts and has decent supports around 79-80 Rs Stock should be bought between 79-80 Rs with a SL 78.20 and we could see a target of 92 by the time Nifty Dec Futures nears its target zone of 8600.
Tata Chemicals also looks good and is breaking out of a consolidation pattern though we need further price and volume confirmation but on a initial glance it does look good. Those who trade stocks can keep a watch on these stocks mentioned here. Our focus remains primarily within Nifty Futures and Nifty Options.
Bank Nifty today was flat and did not do much but weakness in some of the private sector banks. Bank of Baroda was seen outperforming today.
Bottom line is form a investment perspective we do not see any significant upsides in Banking stocks hence park money in Sugar Sector.
Good Trading To You!