NIFTY BANK: A Tense Standstill

“NIFTY BANK is at an interesting point. Regardless of the reasons, we finally have a lower low on the weekly and monthly charts. 47,750 on the spot is a very important level. If the index can sustain below this level for a couple of sessions, then we would be looking for a drop towards 46,200 to 45,600 in the next few days. Top heavyweights like HDFC Bank and ICICI Bank are still holding above their January lows, which has put the banking index and the overall market in a consolidation phase. I have been a strong believer that both ICICI and HDFC Bank will see fresh lower lows, but it’s just taking more and more time, especially with what happened with IndusInd Bank. There are forced inflows in stocks like ICICI Bank and SBI, but I guess this won’t last long. Let’s see.”