Bank Nifty 25th May 2015
Bank Nifty Trend yesterday was volatile after making a high of 18755 Bank Nifty fell to 18354 and then recovered marginally to close at 18433. As per our Bank Nifty Prediction and Bank Nifty Trend Minor trend is up while major trend remains down. Our view remains the same this is a pullback and should be used to exit trapped long positions. As per our Bank Nifty Trend analysis we do not think that this is a fresh rally towards new high. Bank Nifty break below 18294 Spot level Minor trend will change to down again and on any rise or low risk entry point Bank Nifty will be a short selling candidate. Bank Nifty Futures open interest indicates traders are stuck in long positions yesterday (22nd May 2015)
Bank Nifty 25th May 2015 – Constituents
State Bank of India came out with Q4 numbers on Friday 22nd May 2015. Results were above analyst estimates Q4 net was up by 23 percent and bad loans ratio was down. Among the Public Sector Banking space we had mentioned that State Bank will outperform and it did. However we always recommend to follow the main trend and the main trend in Bank Nifty is down so avoid buying into State Bank from a longer time frame. Short term trading can be done (when what etc all details will be updated live to clients)
Punjab National Bank looks very weak and is all set to touch 130 levels. If Bank Nifty confirms break down then traders who are looking to trade stock specific should be selling PNB on all rise or near resistance points. PNB both minor and major trend remains down. It will lead the downside in Bank Nifty.
Bank of India also looks very weak structure is very similar to PNB and BOI looks all set to break previous low of 190 and head for 171 Ne spot rates mentioned. Canara Bank is headed 5-7 percent lower from here. As advised in our Portfolio Advisory Services we have recommended switch from Banking sector to sugar. (we are very bullish on the sugar space and agri commodities in general) United Bank of India hit fresh 52 week lows massive structural problems contiue for the bank.
From Private sector banking Icici Bank looks very weak or rather is among the weakest and Icici bank will be the best stock to short from Private Sector Banking space if Bank Nifty confirms breakdown. Icici Bank could test 291 Nse spot levels mentioned.
The top gainers in the banking space were Kotak Mahindra Bank (up 3.2%), Yes Bank (up 2%) and Punjab National Bank (up 1.7%)Karnataka Bank (up 6.2%), HDFC Bank (up 3.5%),
The top losers in the banking space were Bank Of India (down 3.3%), Bank Of Baroda (down 3%) and Andhra Bank (down 2.3%) Allahabad Bank (down 5.8%), Oriental Bank Of Commerce (down 4.3%)
Bank Nifty Live Updates will be given as and when possible more details on other Bank Nifty stocks will be given later.
Good Trading To You!