Don’t short Bank Nifty till it drops below 44,500: Rupak De
Bank Nifty has not been displaying significant momentum, primarily due to the lackluster performance of the heavyweight HDFC Bank. Rupak De, Senior Technical analyst at LKP Securities, says it may not be advisable to consider shorting until Bank Nifty drops below 44,500. “A decisive decline below this level could potentially drive the index towards 43,800/43,500.
On the upside, 45,000 is likely to provide strong resistance,” he said.
Edited excerpts from a chat:
Nifty ended the month 1.5% stronger despite all the negative news surrounding rising crude, bond yields and dollar index. Given the fact that FIIs are having $733 million short position in index futures, where do you see the index going in October which is known as 'Bear Killer'?
Nifty ended the month of September with gains, following a weak August closing. The recent selling pressure was halted around the 50-EMA.
However, we need to close above 19,750 to witness a decent rally in the month of October, which has a reputation as a «bear killer.» A close or sustained move above 19,750 might take Nifty on a ride towards 20,500-20,700. On the lower end, 19,470 is a level that may act as the last support for the bulls.
It looks like till HDFC Bank starts inching upwards, it would be nearly impossible for Nifty Bank to sustain positive momentum. Would you be comfortable shorting the stock as well as the banking index in the October series?
Lately, Bank Nifty has not been displaying significant momentum, primarily due to the lackluster performance of the heavyweight HDFC Bank.
However, it may not be advisable to consider shorting until Bank Nifty drops below 44,500. A decisive decline below this level could potentially drive the index towards 43,800/43,500. On the
. Read more on economictimes.indiatimes.com
