BANKNIFTY for 24th February

Unlike Nifty , Banknifty made a green candle, albeit base like, with long upper and lower shadows meaning that traders are divided over upper and lower limits of the index. Currently it is sandwiched between 20 DEMA (Exponential MA) and 20 DSMA (Simple MA). It reversed down from 50 DEMA resistance on Thursday. With all the talk of corona virus surrounding our and global markets, pressing issue for our banks is telecom sector AGR dues. Now what happens on that front will definitely dictate movement in major banking stocks. Out of 5 major banks (ones which has more than 75% weightage together in Banknifty ), ICICI, SBI and Axis Bank are looking good; HDFC and Kotak are looking bad. Banknifty is most likely to follow Nifty and hence I would be inclined to take short trades. Unfortunately, no new levels were created due to movements on Wednesday and Thursday. So old levels as marked on 15 minute chart, are being shown.
All the best. Happy trading.

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