Long

Bank Nifty Oversold

Updated

BankNifty has taken a near 20% hit since the beginning of this year due to bearish economic outlook as well as a massive burden of 7 lakh crore + NPA. The budget has been published and the government has pledged to recapitalize PSUs by a measly 25k crore for now. I believe that the banking sector is yet to see its real lows however for the time being a stabilization in sentiment and a retrace from the fear induced overselling should push banknifty closer to the 15.5k range before it makes its next leg down. There is also a possibility that it can break out of this downwards channel and test supply zone at 17k depending on sentiment in the coming months. Within 2 years I expect banknifty to reach lows well below 10k.

First TP 14.8. Second TP 15.5. Third TP 17k. SL @ 12.6

Trade active

First TP hit. Confident for second TP expecting a slight retrace at 16k. Will think about 17k based on further observation of sentiment in ante-ceding week

Trade closed manually

Trade closed @ 15.3k from 13.7k for roughly 12% profit. Strong resistance zone at this level looking for potential re-entry @14.6

Note

2nd tp at 15.5 hit

Trade closed manually

Have slightly edited my original chart and have now resumed a bearish stance. Check it out at:

Note

Called the bearish stance at the perfect time now an intraweek idea

RahulAndra

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