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Banking sector - All set
to lead the last leg of current downtrend
- Alok Kumar
( Director -
investCraft) / Pattern Analyst /
alok@iicmindia.net
Monday - 03
Oct 2011
Pattern
Indian market's
favorite sector , among equity investors - Banking , now
showing a scary picture . Pattern developing among major
banking counters - SBI , ICICI Bank , Axis , BOB, Union ,
PNB , HDFC Bank etc is indicating towards a much deeper
correction in banking space.
SBI is all set to move
below 1800 , which may open a downside possibility of
another 10% to 15% to 1500-1600 levels
ICICI Bank , below 800 ,
the next target would be 710-690
Axis Bank may find support
near 760-800 , if it moves below 1000 Rs. mark
................ and so on
If we see Bank Nifty charts , below
8950 , we see another 10-15 % correction to 7700 - 8000 levels
After seeing the pattern developing
in Banking Sector , we expect this sector to lead the last leg of
current downtrend. Since this is one of the favorite sector among
investors of all classes , fall in banking may lead to more cut in
major indices.
Advise
It is needless to say that
Buy on declines , because we know , almost all our investors
, who are not new to the market , must be stuck in banking
stocks as well , like any other sector.
Don't rush into averaging
right now , just wait for the last leg to approach its
targets given above ( if you have scripts other than
mentioned above , refer bank nifty levels)
Start averaging your banking
scripts as Banknifty approaches 8000 - 7700 levels on the
downside . Upside on Banknifty is capped at 10000
For new investors - its a
Golden Opportunity - Start buying banking scripts if it
moves 10% lower from current levels and keep accumulating on
further downside - Alok Kumar ,
www.investcraft.in
(I welcome all feedbacks & suggestions on
alok@iicmindia.net )
Mid Term
Market outlook 30 Aug 2011 ,
based on Pattern Analysis - by Alok Kumar , Director ,
investCraft
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