Bank Nifty 26th May 2015
Bank Nifty Trend today was trading with negative bias after making a high of 18452 Bank Nifty fell to 18302 and then closed at 18328 (Bank Nifty Spot Levels). As per our Bank Nifty Prediction and Bank Nifty Trend Minor trend is up while major trend remains down. Use pullback to exit trapped long positions in Bank Nifty or Bank Nifty constituents. Bank Nifty is under performing Nifty spot significantly so even if Nifty pullbacks to 8550 still Bank Nifty will hardly rally. As per our Bank Nifty Trend analysis new high won’t come in Banking sector looking at the structure of many Baking sector stocks they are all set to lead the decline on breakdown. Bank Nifty tomorrow (26th May 2016) if breaks below 18260 Spot level Minor trend will change to down again and on any rise or low risk entry point Bank Nifty will be a short selling candidate. As per Bank Nifty Futures open interest indicates traders have added fresh long positions to average the stuck / trapped long positions and this generally means Janta is going go for a toss.
Bank Nifty 26th May 2015 – Constituents
PNB is the weakest in Public sector banking space. It will be leading the downside in Public Sector Banks (PSB is the weakest sector in the market and it will be prudent to stay away from this sector for the time being)
Axis Bank, Icici Bank are the weakest in Private Sector Banking space. (If you are a trader please don’t even think of Buying these stocks as both these counters will lead the decline in Private sector banking. We could very easily see 7-10 percent lower in these counters.
Yesterday we had updated Canara Bank is headed 5-7 percent lower and it did today itself. Now Canara Bank is headed for almost 15 percent lower from CMP as it has taken out very important support. If on Bank Nifty Tomorrow (26th May 2016) breaks down then Can Bk will collapse totally. Stock wise Can bank has important time cycle support on 27-29th May 2015. (Lets see if it holds out on these dates)
Bank Nifty Futures 26th May 2015 – Longer Term view
Bank Nifty has been in a down trend since 4th March 2015 and this current down cycle will last minimum till 10th July 2015. Within this time it would be prudent not to have any long exposure to this sector in your portfolio and at the same time avoid any kind of so called “Value Buying” with the current state of the economy NPA’s (Non Performing assets) are set to rise and tht’s going to put significant pressure on bottom line profits for the Banking sector as a whole (Both Public and Private Sector). In a nut shell it’s better to stay away from this sector for longs/ investing. In our Portfolio advisory services we have advised to exit this sector and move to sugar space which will blast after 10th July 2015. We expect 5 X returns from sugar stocks. Renuka is already reporting turn around (from loss it’s turned to profit’s)
Bank Nifty Live Updates will be given as and when possible. For details of our advisory services feel free to call me on 9222294707.
Good Trading To You!