The overall trend of Bank Nifty as per daily to weekly timeframe chart is week: HDFC Securities

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Current Observation:  Daily timeframe: The banking sector has witnessed a sharp decline on Friday, after shifting into sideways consolidation for the last few sessions.  The positive sequence of higher tops and bottoms is intact and this week's high of around 20900 levels could be considered as new higher top of the sequence. Now one may expect beginning of correction to form a new higher bottom.  Daily momentum oscillator like 14 period RSI has dipped down sharply from the upper area of 80 levels. From here the daily RSI s expected to be around 45-50 levels.  Major sector participants like SBIN, ICICI Bank, Axis Bank, PNB, Kotak Bank and Yes Bank are showing top reversal pattern. Other mid cap and pSU Banking staocks have all formed a top reversal patterns from near key upper levels.  Weekly Timeframe: The fine uptrend of banking sector seems to have completed this week around 20900 levels.  The formation of negative candlestick pattern has been formed this week with long upper shadow, which is indicating rejection of buyers at higher levels.  The sequence of higher tops and bottoms is intact and the banking sector seems to have completed new higher top around 20900 levels.

Summing Up:  The overall trend of Bank Nifty as per daily to weekly timeframe chart is week one may expect banking sector to decline down to 19000 levels in the next couple of weeks.  One may look to go for shorting in large cap banking and also PSU bankimng stocks at cmp or on any bounce for decent lower levels.


LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3011085