Bank Nifty 11th Feb 2016
Bank Nifty today finally touched our support zone of 14500 area and now we are almost at the bottom and we do not see much more downside in the immediate term so traders and investors who are stuck in banking sector stocks which includes public sector banking and private sector banking stocks must look to average their positions and then look to get out on tech higher side as and when tier respective prices do come. Even a better trade rather than buying that particular stock in which you are stuck. e.g. if you are stuck in Axis Bank then hold Axis Bank and rather buy IDBI Bank of equal amount (we are recommending this strategy as IDBI Bank is looking to be one of the best in the sector and we feel it will out perform the broader Indian Indices which include Bank Nifty and Nifty 50) So it will be prudent to buy one of the strongest from this sector also the beta of the stock is good and as per our IDBI Share Price analysis / forecast we can expect a target price of 88-92 and IDBI Bank has good supports around 52-50 area so all the criteria are fitting properly into this one and we do not see much downside also in IDBI Bank. So those who are stuck in any banking sector stock may please consider this strategy.
Coming back to bank nifty we do not see the index out performing the Nifty 50 in fact there are series of indicators which are warning us that this entire sector will be a laggard during the bullish cycle move towards 8800-9000 so please avoid fresh longs in Bank Nifty if you at this juncture do not have any exposure to Banking stocks. In our PAS we have only recommended IDBI bank for short term delivery which means it will just be a trade in and out and we will not be holding long positions here beyond sometime so please keep that in mind while trading. (when to buy, where to buy, how much to buy, where to book profit, when to book profit etc all details will be given to our clients, if you are trading only on the basis of this post then please use appropriate risk management procedures and then only trade)
Good Trading To You!