Bank Nifty 23rd Oct 2015

Bank Nifty 23rd Oct 2015

Bank Nifty Minor Trend is down. Bank Nifty Major Trend is Neutral. Overall we do not see Bank Nifty outperforming against Nifty 50 at least for the time being. Bank Nifty has a negative time cycle which will begin over the next few days and hence it is recommended not to be long in Bank Nifty Futures.

Public Sector Banks look more weak than Private sector banks and we maintain our view to avoid this sector totally. Over the next few days we will see NPA / Asset quality problems from most banks including Icici Bank. Public Sector Banks are having a massive problem in their balance sheets however Icici Bank and a few other Banks also are going to see severe problems in the next few trading days. Extreme Caution is advised in Banking Sector overall.

Bank of India, Punjab National Bank, Federal Bank are looking very weak and it could break the bottom made on 4th Sep 2015, once the bottom of 4th Sep 2015 is taken out expect another 7-10 percent fall in these banks. Overall maintain switch to sugar sector and avoid exposure to Banks totally at this stage. If you want to have exposure to this sector then Indusind Bank, HDFC Bank both of them look to be the best stocks within this sector. We expect both these Banks to outperform the Bank Nifty and could also outperform the Nifty marginally.

Good Trading To You!

Company Group Current Price (Rs) Prev Close (Rs) Change % Change
Au Small Finance Bank Ltd. A 1175.70 1165.40 +10.30 +0.88
Axis Bank Ltd. A 756.15 755.25 +0.90 +0.12
Bandhan Bank Ltd. A 297.85 305.05 -7.20 -2.36
City Union Bank Ltd. A 153.85 155.45 -1.60 -1.03
Federal Bank Ltd. A 87.25 85.40 +1.85 +2.17
HDFC Bank Ltd. A 1434.45 1442.85 -8.40 -0.58
ICICI Bank Ltd. A 676.75 676.65 +0.10 +0.01
IndusInd Bank Ltd. A 981.30 988.70 -7.40 -0.75
Kotak Mahindra Bank Ltd. A 1740.40 1723.10 +17.30 +1.00
State Bank of India A 423.30 429.15 -5.85 -1.36