It says that ‘After going through all doldrums and whipsaws, things got back on the track and start behaving the same way it was behaving earlier’. The index has witness a steep fall in previous week due to weaken global cues and election season and erased almost 600 points which has wiped out five lakhs rupees of the potential investors. While the 50-stock bundle is trying hard to gain the momentum back and consolidation near 11,250 levels but indices are performing at their worst and the PSU banks that has acted as a safe haven in recent days has lost 3.46% in today’s session, currently trading at 2,918.05 levels. The index has formed a ‘Bullish engulfing’ candle stick pattern in previous trading session, which is a bearish pattern whose reliability is moderately high. The index is expected to continue its bearish momentum and find support that is placed at 2,789.57 levels. Awesome oscillator is hinting for more downside while RSI is trading at 34.63 levels. . Although Average True Range and RSI are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Canara Bank: India’s second largest PSU bank is trading at 244.7, 7.86% below from its previous close. The bank has delivered poor results in Q4, 2019. Net Losses of the bank has been widened to Rs. 551.3 crores.
- Allahabad Bank: The stock is trading at 41.85, 7.21% below from its previous close. The counter is trading below 200 days Exponential Moving Average. The bank has posted a loss of Rs. 3,834 crores this quarter.
- Union Bank: Top loser in PSU bank section has erased 7.09% in today’s session. The stock is trading below 50 days Exponential Moving Average. Net Interest Income of the bank has been reduced by 2.12% YoY.