Bank Nifty / Bank Nifty Trend / Bank Nifty Prediction / Stock Market Tips for 27th July 2015
Bank Nifty Trend today was down. After consolidating between 18764-18856 Bank Nifty broke down from intraday range and closed at the low point of the day at 18640. (Bank Nifty Spot Levels) Bank Nifty Minor Trend is down. Bank Nifty Major Trend is also down. On rise it will be better to exit Banking Sector as results will show increase in NPA’s and worsening of asset quality. Bank Nifty Support for 27th July 2015 is at 18548 (Bank Nifty Spot Levels) Break below this level and watch panic selling in Bank Nifty. (Eventually it will break 18548 so no point in holding longs here). Bank Nifty Futures has made classic lower top and lower bottom formation and whenever such formation occurs index gets hammered on the downside.
Bank Nifty components
Banking Sector as a whole was very weak today (24th July 2015). State Bank of India, Icici Bank, Yes Bank, Canara Bank, Bank of India were very weak today and were leading the decline. Kotak Bank, Indusind Bank and Bank of Baroda were outperforming today but we do not see that lasting for long. Icici Bank was the worst performed today while Bank of Baroda was the best outperformer today from the Banking Sector. Banking Sector was overall underperforming Nifty along expected lines.
Axis Bank has broken support at 579 (NSE Spot Levels Mentioned) and now is headed lower towards 566. If it breaks 566 with volumes then 531 is the next level to watch out for Axis Bank.
Axis Bank Q1 Net profits were up 18.7 percent Year on Year. Provisions were up almost 3 times and we have been saying that asset quality will only get worse from here. With the current scenario on the ground we do not see a pick up and that will only add to the problems of Banking Sector. Veterans from the Banking Sector have told us that this is just tip of the ice berg lot more skeletons are yet to come out. Other income or fee based income will not save them.
PNB is also very weak and break below 137 (NSE Spot Levels Mentioned) will take it towards 121.
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