Bank Nifty 1st Dec 2015
Bank Nifty Minor Trend is up / bullish. Bank Nifty Major trend is sideways. Yesterday we had clearly mentioned that we should be focusing on stocks whose chart structures look very good and positive like IDBI if we are doing stock specific trading then we must have good powerful structures and IDBI was zooming today. Bank Nifty support and resistance for tomorrow is at 17200 and 17610. If 17610 is taken out before 11.30 that time is just after the Reserve Bank of India announces its policy we could see Bank Nifty 17800 also tomorrow but the criteria of 17610 being crossed has to be completed. Bank Nifty Spot / Cash Levels Mentioned.
Reserve Bank of India Policy Meet 1st Dec 2015
Reserve Bank of India will meet on Tuesday 1st Dec 2015 to announce its bi-monthly policy review. As mentioned we do not expect any change in policy through we may see some minor tweaks on the SLR front which in turn will boost liquidity in the Banking System. What Governor Rajan says tomorrow is more important than the Reserve Bank of India credit policy itself.
Axis Bank continues to struggle and day by day it is sending out only one message and that is Axis Bank will lead the down cycle towards 7400- Nifty spot levels mentioned. The structure is getting weaker with every passing day. Smart money knows something terribly has gone wrong in the management of the bank or some income is going to take a massive hit. As per our analysis of Axis Banks balance sheet and forward looking outlook the Bank is already started taking a hit from payment wallets and that trend will once see acceleration.
Punjab National Bank looks much better from the public sector banking space. The charts are indicating that Punjab National bank will be outperforming the Bank Nifty by a good margin so those traders who want to buy and trade in Bank Nifty should rather concentrate on stocks like PNB, IDBI, Tata Motors and Ashok Leyland. I will update more details as and when possible on Tata Motors and PNB. Please refer to my recent post for IDBI and Ashok Leyland.
Yes Bank continues its range bound movement and we do not recommend to buy yes Bank. If you are trading in individual stocks then consider the stocks mentioned above.
For investment purpose we have been advising our PAS clients to skip this sector and switch over to sugar sector as form mid dec 2015 we will begin a very powerful bullish cycle in sugar stocks.
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