Bank Nifty 30th Nov 2015
Bank Nifty Minor Trend today has turned up / bullish. Bank Nifty Major Trend is sideways. Bank Nifty resistance for tomorrow 30th Nov 2015 is at 17570. If 17570 is taken out expect Bank Nifty to begin zooming higher and we could even see 18351 in the days to come. As per our analysis of Bank Nifty our advice to our clients has been to avoid exposure to this sector totally and switch to sugar stocks like Bajaj Hindustan, Renuka Sugar and Eid Parry. If some trader or investor still wants to take exposure to the sector then rather than having exposure to Bank Nifty it will be prudent to take longs exposure in stocks like Punjab National Bank, IDBI.
The structures of both PNB and IDBI are way too significantly better than the Bank Nifty and we expect significant outperformance from both PNB & IDBI Banks.
Axis Bank continues to struggle, in such a good background support from Nifty and Bank Nifty the charts continue to convey one very important message and that is get out of the stock. I am going to lead the decline and the ideal short selling candidate on the way down but we feel still there is some more time remaining to reach that stage. Coming back to 30th Nov 2015 Axis Bank has resistance at 476-478 Nse cash levels mentioned. Till 478 is not taken out don’t try any stunts here. If you are stuck in long positions in Axis Bank use any rise possible to exit the stock.
Icici bank the story is absolutely identical to Axis Bank. Chart looks bad, Icici Bank share price has been underperforming over the past few sessions and this stock too will be the ideal short selling candidate on the way down. These stock will hardly bounce and will see very steep price cuts. Extremely high valuations and pathetic environment, increasing competition from payment wallets are really going to see Axis Bank & Icici Bank taking a big hit soon. Once FY16Q3 results are out most of you guys will realize what I am talking about today.
Yes Bank is consolidating between 700-800 price band and we do not see Yes Bank outperforming. Yes banks balance sheet is better than Axis Bank and Icici Bank but you know the saying goes if you are second, you are only first in a long list of losers. We don’t recommend this Bank also nor for short term nor for longer term. Astro cycles will play havoc in Banking sector after 5-6 months. Be very careful in this sector.
Good Trading To You!