S&P CNX Nifty fall like a house of cards after RBI’s MPC rate cut, removal charges levied of NEFT and RTGS, no more licenses to banks in short-term failed to cheer the market participants. The Indian benchmark erased 160 points; Nifty Bank erased 700 points and witnessed a bloodbath. The market participants were expecting a 50 basis points cut in order to curb the slowdown in recent GDP numbers reported by Indian government but less than expected contribution from the RBI pushed the 50-stock bundle to downside. Of all the indices NSE PSU banks lost the most, currently trading at 3,129, 4.42% below from its previous close. On daily scale, the index has been retraced from 0.88% ratio as per Fibonacci analysis. The index is expected to continue its bearish momentum and find support near 100 days Simple Moving Average. MACD has given a bearish crossover. RSI is hinting for more downside showing no signs of divergence and oversold situation. Although MACD 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.
- Syndicate Bank: Top losing stock in banking bundle today is trading at 33.70, 8.17% below from its previous close. The stock is trading below 200 days Exponential Moving Average.
- Bank of Baroda: The stock is trading at 122.6, 7.54% below from its previous close. There has been a block deal of 724,588 shares on June 04, 2019. The bank has narrowed down its loss to Rs. 991.4 crores in Q4 results. Asset quality was improved.
- Allahabad Bank: Midcap bank is trading at 42.60, 5.54% below from its previous close. The stock is trading below 200 days Exponential Moving Average.
- State Bank of India: India’s largest PSU bank is trading at 339.5, 3.05% below from its previous close. There has been a block deal of 144,290 shares in morning session today.