Looks ripe for a significant correction on weekly charts.
HDFCBANK being the biggest contributor of the BANKNIFTY, the index should follow if this pans out.
With RBI policy meet this week and impending Gujarat election, it won't take much for hell to break lose.
I think it's very good time take profits off the table on bank stocks.
After a nice 68% gain so far this year, HDB has been digesting these gains for the last month and is poised for it's next leg higher. We want to be long above $100 with an initial target of $108.
Modi's demonetization effort has bit the Indian economy quite hard. Perhaps there is a case to be made from a long term perspective that the banking sector is a buy after the recent sell off. Given the technicals and on going chaos, I'm going to wait and see if a better buying opportunity emerges. Possible targets are the parole black lines.
