Nifty Bank

Bank on Banking

Banking stock has been the most under performing in the recent times. Especially, PSU Banks had been the most hard hit on NPA Concerns. But finally Nifty Bank charts are giving some positive divergence at the CMP:14036 with respective to RSI and Volume. As we all can notice in the chart attached, index has been trending in the downside channel, so the view for a short term still can be intact with Bearish but, looking the divergence as marked between the Nifty Bank against RSI and Volume,  we can take a bit risk at CMP. Already Budget was announced, and primarily studying it at a flash it is saying its positive for the Banking sector as govt has set aside a fund for PSU Bank’s NPA and also now analyst are expecting a rate cut before before next policy. Even the great cut on Fiscal Deficit is the achievement for the Indian economy. So surely one can take a risk on Nifty bank at CMP with the support from the PSU Banks,

Recommended Strategy for Risk Takers: Buy Nifty Bank 1 lot and Hedge with 13800 PE March


Recommended Strategy for Long Traders: Create a long Strangle with buying 14300 CE March and 13900 PE March on Nifty bank


Tgt for this expiry:14650 

Stop loss: 13600

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