Bank Nifty / Bank Nifty Live 24th Nov 2015
Bank Nifty Minor Trend is neutral. Bank Nifty major trend is sideways. As per our Bank Nifty analysis we do not see any significant weakness for the short term but in longer term we see massive weakness for Bank Nifty as Bank Nifty heavy weights like Axis bank, Icici Bank and State Bank of India overall longer term structures do not look encouraging at all. For any stock / share price to move higher the underlying chart structure must be making higher tops and higher bottoms and this is the basic fundamental principle but most of the Private Sector Banking Stocks and Public sector Banking stocks are not doing that on the contrary structures like Axis Bank and Icici bank are indicating that they will lead the collapse in Indian equity prices later after the final tezi / bullish cycle ends. The structures are conveying that they are ideal short selling candidates not the other way round and the long trades in private sector banking is extremely crowded. Take any mutual fund and you will definitely find most fund managers are holding Axis Bank, Yes Bank, Icici Bank in top 25 holdings and when the private sector banking space is so crowded and in addition to that we see such dangerous structure being formed on the charts it is best to avoid these set of stocks.
IDBI looks good it has good support around 81-79 levels and if the share price does come near 81-79 we must be buying IDBI taking a small stop loss. We see a good time cycle support also for IDBI where IDBI could easily move towards 96-101 range. The Chart structure of IDBI does look much more encouraging. So keep a watch on IDBI. I generally do not trade stock specific as most of my clients know but if I am forced to trade stocks then IDBI would definitely be on top of my list.
Bank of Baroda also looks good from a trading perspective. There is planetary support around 165-164 and incidentally the share price did take support just around that support on Friday 20th Nov 2015. Towards 166-165 short term traders can Buy Bank of Baroda with stop loss at 163 for targets of 176 in Dec Series. Like IDBI, Bank of Baroda’s overall structure looks encouraging. Keep this one too on your radar. Both IDBI and Bank of Baroda could lead the up move and could significantly outperform Bank Nifty.
Punjab National Bank has been consolidating between 123-144, if 144 if taken out with volumes then we could see short term fireworks in Punjab national bank. Looks good above 144 and we could see 171 once stable above 144 with volumes.
Good Trading To You!