Nifty Bank

Fear Factor on Banking

Banking sector has been the most out-performing sector in after budget rally. But now it has approached dangerous resistance level and trader should at least book some profits on longs. Technically on daily charts, Nifty bank is resisting near to the 100 day average which is at 15950 while even the option data is suggesting strong wall at 16000 for this week. But most dangerous Fear Factor is on the weekly charts as attached! First danger is of 50 Week SMA crossing down 100 Week SMA which if confirmed can open gets for long slide on the index. Secondly, index is resisting since two weeks at the downside channel which is intact since the high last year. So now all eyes are on the some fundamental trigger. Two upcoming triggers are yellens Speech tonight and RBI policy next week. So strategy on trading as of now is Sell Nifty Bank April with tgts 15455/15120 SL:15950

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