Bank Nifty 25th Jan 2016
Bank Nifty today did very well and finally managed to close the day in the green up by good 2.62 percent. Bank Nifty has a short term resistance between 15473-15433 (Bank Nifty spot levels mentioned) and we could see one round of dip in Bank Nifty towards 14100-14500. As per our Bank Nifty analysis / Bank Nifty Prediction we see 14100 levels holding and we expect Bank Nifty to head higher from those levels. Those traders / investors who are stuck in trading / investment long positions in Bank Nifty / Public Sector Banks / Private Sector banks must average their positions around 14500-14100 and then get out at or around their cost price / purchase prices. As per our analysis this sector is not the nest sector to be invested in and we see longer term pain in this sector so please avoid this sector from a investment point of view and traders please avoid this sector from a trading point of view. As of right now many of the Banking sector stocks are heavily in oversold territory and hence we could see some bounced but the idea / principle is to use this bounce to get out of the Indian Banking Sector. Thanks to the Reserve Bank of India we will keep seeing worsening in the asset quality going forward so once again we reiterate please avoid this sector totally.
The charts of most of these stocks within this sector have broken down totally and have been consistently making lower tops and lower bottom and still worse in the structures are that around ever lower top volumes have declined and volumes have picked up always on the downside. The stocks and sector which make such chart patterns do not warrant any investment. It is best to avoid them. I hope you get what I am communicating.
Good Trading To You!