BankNifty . . time to 'bank' profits!!

The Nifty had a free fall. While we did not expect this in a down gap, nonetheless we were expecting it. In yesterday's ITG meeting itself we discussed it. So the members were ready for the fall!

Banking stocks are showing mixed signals. While ICICI Bank and the likes are falling, SBI and the likes are rising... But a look at the BankNifty indicates that a reversal is now due (or overdue).



Consider 9500 as a crucial support area and a break below this level should give the necessary trigger. Even advanced indicators (not shown here) are suggesting the possibility of trend reversal.

Keep a down target at 8800 (on break below 9500). Investors who are invested in banking stock may want to take profits - to their own banks!

It is also interesting to note that many of today's gainers are defensive stocks / stocks from defensive sectors!!

Happy market watching !

CA Rajiv D Khatlawala
www.investogyan.com