Bank Nifty is a highly sensitive index with sharp response to various domestic and international events, especially those linked to interest rates, currencies, international trade, etc. Its has nearly 2x beta compared to Nifty index. Feb2018 and Mar2018 were bad for Bank Nifty and it had sharp correction from 27,000 to 23,500 – PNB scam, and interest rate hikes in the US and ICICI Bank issue concerning MD/CEO.
Observe this intraday chart (5 min) carefully for valuable lessons. The lessons will be useful/relevant for larger timeframes of 15-30-60 min also.
Downside Risk increases below 100 LSMA
Downside Risk increases rapidly when 20 LSMA and 50 LSMA cut below 100 LSMA
Since the beginning of the year, recovery of the global economy underperformed expectations, as increased divergence between the macroeconomic policies of major economies and Brexit added to uncertainties in the global economy. Against such a background, the Chinese economy managed to stay broadly stable, with all major indicators within a reasonable range. However, structural problems were still obvious, and the pressure of economic downturn was great. Against an external environment with mounting difficulties and austere challenges, we improved management, and deepened reform, innovation and business transformation. We actively resolved the various difficulties, fostered stability, made progress, realized stable operation, and achieved tangible interim results. Continue reading ICBC Investor Update Q3 2016→
Buy IFCI at 26.65 for Target 28.65 with Stop Loss 25.00. That’s 2 points reward, 1.5 points risk. This trade may take 1-2 months. The uptrend from March has been broken but IFCI tends to bounce back from sharp corrections. Market conditions are favorable for financial stocks with reducing interest rates. Investor with 12-18 months timeframe should hold IFCI for target 40, which can give 50% return on current price.
