Bank Nifty 28th Jan 2016
Bank Nifty Minor Trend is down / bearish. Bank Nifty Major Trend is neutral as of now. As per our Banking sector analysis / Bank Nifty Prediction regular readers and clients of this website are well aware that we are not bullish on the Banking sector be it private sector banking or public sector banking frankly there is not much to choose between the two. All of them baring Idbi Bank and HDFC Bank have almost similar charts and the charts which keeps making consistent lower tops and lower bottoms should never be bought, nor should be averaged but we do know that a lot of traders and investors are stuck in Banking sector stocks and hence we are guiding for Bank Nifty. Bank Nifty on all pullbacks lacks volumes and on resuming the down move volume starts zooming higher this pattern also is a clear indicator that problems within the Banking sector are far from over. The smart money / connected circle know all the problems well in advance and hence their trades (which are in heavy volumes) shows us and confirms the wave analysis as we have been saying.
Bank Nifty has a support between 14100-14500 (Bank Nifty spot levels mentioned) and those who are stuck from higher levels should look to average between 14100-14500 and then get out higher as and when their prices do come. So overall we are not bullish on this sector there are way too many problems in this sector and they are not going to be fixed overnight. If these banks fall another 30 percent from here then we can safely say that all the negatives that will arise out of asset quality issues, NPA’s issues etc would have been factored into the prices and then only we can we consider buying them.
For the institutional side those who have to keep some amount of exposure in Banking sector please look at IDBI Bank and HDFC Bank as they will out perform the Banking sector by a huge margin and we do not see any significant downsides from here in both IDBI Bank and HDFC Bank.
Good Trading To You!