Banking stocks have given a good rally from the budget low and specially PSU banks, but now since last 3 sessions we are losing some strength in the stocks. Some Private sector banks are trading at 52 week high which posted strong results for the last quarter. PSU banks are the cause of weakening because they are posting worst than expected results. This could be clearly seen in Nifty Bank index chart that too the monthly which is attested in the post. Index Trade is on the channel Bank on other side of which we could see a long term breakout but it seems lil difficult looking at the momentum in short term. Adding open interest Data , i feel 16000 as the bottom while 17000 is the resistance which is also the channel resistance. technically support is seen at Red line which is at 15790. So this week trading is crucial for banking stock.
Recommended Strategy on Index: Buy Around 15790 or above 16800 which is early. Stop loss would be 15500 and 16500 respectively.