Let Me See Your Hands, Sir !!

The fall that we had been writing about all last month has finally started and the Nifty has now started its descent.We had been updating the blog regularly so readers could see for themselves the signals that were generated at levels where we should have cleaned up before the markets cleaned us.

We are attaching an update on BankNifty as we perceive this Index as building and losing ground and momentum very quickly and rapidly. Among the top 10 heavy-weights of the index SBIN, ICICI, HDFCBank & HDFC hold very significant amount of shares as a percentage to weaken the index.
As for the the other banks;


HDFC & HDFC Bank- RSI, Stchastics, CCI indicators and candlesticks at this point do confirm the stock has changed trends. The security is losing steam pretty fast and quick.

ICICI Bank - The stock has already lost about 6% value in the last 7 trading sessions. Today, the MACD has also generated a SELL signal for ICICI BANK. The stock has a thumbs down and can be shorted at these levels for a decent profit in the next few sessions.

SBIN - The CCI Indicators and the Stochastics generated a sell in SBIN  - The RSI has decreased rapidly from 65- 58 in the last 3 sessions which means the security is continously losing volume and is being played by naked shorters for marginal gains.


               WE ARE VERY BEARISH ON THESE 4 STOCKS AND BANKNIFTY - 
                    A 20% fall in Banknifty could take the index down very easily by 10% 

HDFCBank Target Met !

On the 31st of May we had given our view on HDFCBank when it was @2275 - and the next day it shot up by 100 Rs. Yesterday HDFCBank shot right through touching a high of 2499 and closing @ 2489
The stock may face strong resistance 2539 and one could short at these levels keeping a stoploss of 2444

Technical Call on HDFC BANK

Using a very simple and conventional technical technique - we now see that the 5 DMA and 10DMA  have started to rise over the 20 DMA - the simple rule generates a buy signal when the smaller moving averages are above the larger moving average and triggers a sell/short signal when the smaller moving average goes below the larger or 20 DMA. The application uses a variation of 5,10 and 20 DMA.

As we can see MACD has also generated a buy signal for HDFC BANK.

The equity has been finding and using 2275 as a support line. Short term call or target for HDFC BANK stands at  2350, 2400 and 2475