Bank Nifty 27th Nov 2015
Bank Nifty continues to remain within a tight trading range like Nifty Futures. Bank Nifty Minor trend will turn up / bullish above 17200 Spot Bank Nifty levels mentioned. Bank Nifty Major Trend is sideways. Overall Instead of focusing on Bank Nifty it will be better to look at IDBI from the banking space as the overall structure looks good and it is showing all the signs of providing good outperformance in the coming Dec series.
We continue our bullish stance on IDBI and continue holding long positions for a target of 92. As I have been saying don’t get stuck by targets direction is more important than targets are the overall structure is bullish in IDBI. IDBI Major Trend and Minor Trend are up and it has bounced well from the supports around 80-79.
Punjab National Bank (PNB) has been building a good base around 133-136 NSE spot levels mentioned and once it moves past above 144 with volumes this stock too will join the outperformance segment. If PNB does manage to move past 144 expect the stock price to head towards 158 also in this current Dec series. My point is if you want to trade outside the Nifty then look at PNB above 144 and IDBI on dips as their structures are significantly better than that of Bank Nifty.
Axis Bank, Icici Bank structures do not look good at all and they will not outperform the broader Indian stock markets and further they will add drag on the Bank Nifty Futures.
PNB, Bank of India, Yes Bank and Bank of Baroda were in the green today. Short term technical charts of Private sector banks don’t look good, public sector banking looks better to play the upside. If there is no compulsive need to take exposure to this sector for longer term delivery then switch out to sugar sector and Buy Bajaj Hindustan, Eid Parry and Renuka sugar as all these three stocks will overall give significantly superior returns versus Banking Sector, both private sector banking and public sector banking. The clear growth available in sugar sector is not possible in Banking sector at all.
Banking sector over next 12 months have numerous head winds and some private sector banks like Icici Bank and Axis Bank are going to take a significant hit on their retail fee income so caution is advised. If you do get the opportunity on rise if any exit Axis Bank and Icici Bank.
Good Trading To You!