NIFTY is looking set to test 5600 level after crossing 5350 and 5400 level during the last couple of days. Major action was confined to CNX IT (Trend Score -3) as INFY (Trend Score -13) kept on rising. RELIANCE (Trend Score +17), another bellwether stock, is also looking hot.
Till now, the Index was rising with a slow pace, however, after clearing major hurdles at 5350 and 5400, we expect the NIFTY (Trend Score +17) to move up with high velocity and test 5600 level.
Banking sector which constitutes around 20% of the NIFTY market cap is badly underperforming the Index mainly due to the underperformance of the PSU banks. We believe, all PSU banks are deeply oversold and time is ripe for the SBIN (Trend Score -17), BANKBARODA (-Trend Score 13), PNB (Trend Score -17) and other smaller PSU bank stocks to fill the underperformance gap. We recommend investors to accumulate public sector banking stocks on weakness.
No comments:
Post a Comment