Bank Nifty 3rd Feb 2016
Bank Nifty once again today showed signs of weakness after Reserve Bank of India bi monthly policy review. Reserve Bank of India did not make any changes in its policy meeting on 2nd Feb 2016 and this is exactly what we had predicted well in advance. Bank Nifty Minor Trend is down / bearish. Bank Nifty has support at 14100-14500 and once again we are saying that only those traders or investors who are stuck in Banking stocks both public sector banking and private sector banking must use the dip towards 14100-14500 (Bank Nifty spot levels mentioned) to average their existing trading long positions or investment long positions and then on rise get out of this sector totally as we do not see this sector outperforming during the bullish move towards 8800-9000 levels.
Bank Nifty has immediate resistance at 15527 and support area is at 14100-14500. Our sincere request is that avoid Banking sector totally. This sector will be a massive drag on the Nifty during the bullish cycle and it will really not give any significant returns even if you buy from the lower side. The problems are present in all the Banking stocks and please do not think that NPA and asset quality problems are only present with public sector banks. Icici Bank and Axis Bank management after recent performances has a lot of answering to do, but hang on as per our analysis of the Banks balance sheets till date only 30 percent of problem has been disclosed so there is still lot more problems and issues pertaining to asset quality still waiting to come out in public domain. Hence we are continually advising that avoid these banks and be in sugar sector or stocks like NMDC which has high degree of safety.
In public sector banks State Bank of India is showing some extra weakness and we see a final support for State Bank of India between 160-171, if 5 days closes below 160 then next target for state bank will be 91 (yes 91 will be the target for SBI if 160 is taken out for 5 days in a row) Nse cash prices mentioned.
Good Trading To You!