Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Bank Nifty – The Weaker Hand Among the Sectors – Medium Term Outlook

54 sec read

When the whole world went for a lock-down and economy brought to the brink of the collapse entire global equity markets saw a V-shape recovery except the Indian Banking Sector.

Somehow long term investors are not confident enough about the growth story in the banks after Covid-19. Even on the Monthly charts, it is hard to visualize any long term activity happening on Nifty Bank Index despite the steep recovery in Nifty.

Even before the COVID-19 pandemic, they were constantly in the news for all the wrong reasons. Year to Date still the Index is down by more than 33% and failure at the faster rate put the sector under serious trouble from investing perspective.

Poor credit offtake, Rising Bad Debts & NPAs, Continued operational interference due to COVID-19 are the fundamental reasons attributed to the fall and made the investors stay risk-averse in this sector.

Bank Nifty Weekly Charts

The weekly timeframe is consolidating and withholding negative sentiments spells trouble from the medium timeframe perspective. Immediate Medium-term resistance formed around 22500 levels. For any medium-term turn around Bank Nifty index have to break above 22500 levels

xkvHRMeY (1524×930)

Nifty Bank – Daily Timeframe

Bank Nifty ended with sideways mode post the March 2020 crash and thus far only the extreme volatility got faded to a fair extent in the last 5 months. However no signs of investing money flocking to the Banking sector.

4ys8LtHz (1524×930)

Overall Short term and medium-term outlook for the Banking sector holds trouble. One of the Cautious times if you are an investor/short term investor in this counter.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty Smallcap Will it declines 30% from the current…

Nifty Smallcap index formed a classical bullish island reversal pattern during the last week of May 2020 since then index rallied from 4000+ levels...
Rajandran R
31 sec read

Nifty IT Sector – Quarterly Charts Overview

Thought of titling "What could possibly go wrong with Nifty IT sector" - however, thought of let's not get into overhype mode. By any...
Rajandran R
36 sec read

Nifty Metal Index – Sector Outlook

Last time we tried to evaluate the fair value of metal index using extreme sentimental and running point of control when the metal index...
Rajandran R
32 sec read

2 Replies to “Bank Nifty – The Weaker Hand Among the Sectors…”

  1. Good. What do you expect for NIFTY levels for tomorrow i.e 21/08/2020. UP/DOWN & LEVEL UPTO?

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More