Bank Nifty / Bank Nifty Trend / Bank Nifty Prediction / Stock Market Tips for 28th July 2015
Bank Nifty Trend Today was down. Bank Nifty fell by 2.28 percent to close the day at 18211 down by 424 points. Yesterday and day before yesterday we had clearly warned about this scenario in Bank Nifty. We had clear said divergences were seen and this generally signals a top. Anyways Bank Nifty Minor Trend is down, Bank Nifty Major Trend is also down. Bank Nifty is headed for 17125. Bank Nifty support for 28th July 2015 is at 18042 and Bank Nifty Resistance for 28th July 2015 is at 18453 (Bank Nifty Spot Levels Mentioned)
Bank Nifty Constituents
All the stocks within Bank Nifty were deeply in the red today. Bank of India, Axis Bank were around the biggest losers for today. HDFC Bank, Federal Bank, Kotak Mahindra Bank, State Bank of India, Indusind Bank, Bank of Baroda, Yes Bank , Punjab National Bank, Icici Bank, Canara Bank, all were in the red today.
Axis Bank broke support of 579 then achieved our target of 566 and has broken 566 also now confirming a target of 531. Trend both Minor and Major Trend in Axis Bank remains down.
Bank of India broke the previous low and support and is now headed for 149. We have been clearly advising / recommending to totally avoid this sector as it is showing all the signs of leading the down move. (Both Public Sector Banking and Private Sector Banking) We do not recommend to Hold Long positions in this sector. NPA’s will only keep rising for at least next 3-4 quarters and asset quality issues will keep deteriorating. Under these circumstances and extremely high valuations it does not make sense to park money in banking sector.
Extreme volatility could be seen in Bank Nifty in next 24-72 hours. Caution is advised. Trade via options rather than taking Bank Nifty Futures positions. Avoid bottom fishing in this sector. The fall has to make these stocks cheaper in terms of valuation and then we have to see technical reversals. (some veteran investors are buying Public Sector Banks with all due respect to them I do not see any change in structure at least for now on the charts. )
Good Trading To You!