Bank Nifty 27th May 2015
Bank Nifty Trend today was negative. After making a low of 18266 Bank Nifty pull backed to 18378 and closed at 18372 (Bank Nifty Spot Levels). As per our Bank Nifty Prediction and Bank Nifty Trend is down. Both Minor Trend and Major Trend is down. We have been advising and recommending to use pullback to exit trapped long positions from Bank Nifty and Bank Nifty constituents. Bank Nifty today also was under performing the Nifty and that trend will continue. Most fundamental analyst are of the view to Buy and hold private sector banking and accumulate them on dips but we are do not share the same view or opinion. In fact we maintain our contrarian stance of not having any exposure to this sector at least till 10th July 2015. Since the current down cycle that started on 4th March 2015 will continue minimum till 10th July 2015. Around 10th July 2015 we will consider what to do and take a fresh view, as of now it’s better to skip this sector totally. Avoid this sector as it could lead the downside rally and significant price damage could be seen in Banking sector stocks.
Bank Nifty Live 27th May 2015
We had short sold Icici Bank at 311.50, Booked part qty at 309.1 and now are trailing to 313.20 all Nse cash levels mentioned. We have openly told that Icici Bank and Axis Bank are the weakest and are best short selling candidates from private sector banking space. We sold at low risk entry point as usual and now trailing the position.
Bank Nifty 27th May 2015 – Constituents
We maintain Punjab National Bank is weak and is one of the best shorting candidates available with in Bank Nifty constituents. Use any rise near resistances to sell and hold Since Bank Nifty has broken down most of these stocks from Public Sector Banking space will fall minimum 5-7 percent. In our portfolio advisory services we have been advising to stay away from entire banking space and that advice has fetched handsome returns.
Private sector banking space also remains very weak we don’t expect any out performance from this space also. Trend is down for private sector banking and within two or three trading days stocks from this space will start falling like Public sector Banks. Expect 4-6 percent correction on a average within this space.
Bank Nifty Futures Long Term View 27th May 2015
Long term the best advice is to switch out from this sector on rise and shift to sugar sector which is almost at 52 week lows. We see great value in Sugar sector and we have been recommending to Buy and Hold Bajaj Hindustan, Renuka Sugar and Eid Parry. Renuka sugar has already started showing signs of turn around (from loss of 88 crs to profit of almost 5 crs) This sector will outperform broader markets and by 2019 we expect 5 X returns in this sector.
Bank Nifty Live Updates will be given as and when possible. For details of our advisory services / HNI Broking Services feel free to call me on 9222294707.
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