It was not expected by the market participants that the allocation of the ministries to the warriors of Prime Minister Narendra Modi could bring a roller-coaster ride in the benchmark index. Nifty50 had a quiet and positive opening in morning, was gradually picking up the pace and suddenly it fall like a house of cards after the 50-stock bundle re-test its previous highs with lower strength. Of all the indices PSU Banks who were talk of the down are losing their momentum after the street has assumed that there will be no goodies in the bag of the government for the PSU banks in terms of recapitalization. The index is trading at 3,232.15, 1.89% below from its previous close. On daily scale, Nifty PSU Banks have witnessed a steep fall after forming a ‘Double Top’ pattern, which is a trend reversal pattern whose reliability is very high. Bollinger Bands have shown lower strength while re-test of the previous highs and Bollinger %b was trading below one. Although Bollinger Bands and Bollinger Bands %b 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.
- Bank of India: Top loser in today’s session is trading at 94.5, 3.03% below from its previous close. The stock has reported 251.8 crores profit in Q4 against the loss of Rs. 3,969 crores. NII rose by 57.7 percent. The stock is trading below 50 days Exponential Moving Average.
- Union Bank of India: The stock is trading at 76.20, 2.50% below from its previous close. The bank will raise Rs. 6,000 crores in this fiscal year. The bank is also expecting 3,000-3,500 crores from National Company Law Tribunal.
- Indian Bank: The stock is trading at 275.7, 2.40% below from its previous close. The stock is trading below 50 days Exponential Moving Average. The bank is eyeing on Rs. 1,500 crores from QIP.