Markets had been quite volatile this week on various statement awaiting from BoJ and FED but still Index charts are looking weak as i explained in my last post on Nifty. Though we have seen strong stock specific buying in Mid-cap sector and some front-line stocks too but the main pillar of Indian markets, Nifty bank (Bank Stocks), have started showing signs of under-performance in coming weeks. We saw trigger first from Yes Bank, followed by Indus ind bank to some extent and the main culprit born this week was Axis Bank. Looking onto PSU Banks , if you look at SBI counter, it has been resisting strong at 260 CE were we are witnessing strong writing. So overall Stock specific banking stocks are looking weak. Even if you look at Nifty bank options, we have been witnessing strong writing at 20000CE but on the downside writing for this expiry is still at 19500 PE which gives me strong feeling we could get that next week with furious fall. Coming to chart below, its weekly chart of nifty bank.

29_sept

If we look at the channel which was intact since the low on Budget day, we are closing near to downside support line of channel for almost 6th time but this time is fearful! Why? …We have got 3 bearish candles for last 3 week…Inverted hammer …Gravestone Doji…..Gravestone Doji….!! So if we trade below 19760 spot level next week, it could be Trend Reversal for medium term…indicators are already turning bearish….So i would be recommending sell on rise on Nifty bank…with stop loss at 20300 …Target …19200!!! 

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