Bank Nifty 2nd Feb 2016

Bank Nifty 2nd Feb 2016

Bank Nifty once again under performed the Nifty 50 today and we have been continuously recommending to stay away from this sector. Today Bank Nifty lost 1.21 percent and finally closed the day lower at 15334

Bank Nifty has support at 14100-14500, untill and unless 14100-14500 spot Bank Nifty area is tested we do not see the short term trend changing in Banking sector. We are expecting some negative news for banking sector tomorrow in the Reserve Bank of India credit policy. We are expecting Reserve Bank to ask Banks to be more transparent about their bad loans and that commentary will not argue well for Banking Sector tomorrow.  Anyways if you are stuck in Banking sector stocks (Public sector banks or private sector banks ) then in that case average positions around 14100-14500 and then get out whenever you see you price. In the near term after 14100-14500 is touched we see Bank Nifty moving higher but as we have been saying it will under perform the broader Indian Stock Markets. Rather than focusing on this sector (we still maintain total avoid in this sector, ZERO exposure in our Portfolio advisory services)

Icici Bank, Axis Bank State Bank of India could lead the fall in the next round in 2-4 trading days and hence we recommenced to skip them. (I am writing this because lot of people love trading in SBI and Axis Bank)

Good Trading To You!