The Indian benchmark had a positive opening today led by positive cues from global markets as U.S. President Donald Trump revoked tariffs recently levied on Mexico, managed to sustain at higher levels and hinting for continuation of bullish momentum in today’s session. Indiabulls Housing Finance erased more than 7% today on account of Plea registered In SC for misappropriation of 98K crore of public money and remained stock specific not affected the 50-stock bundle. All indices are trading in green out of which, PSU Banks are looking greener after gaining 1.28% in today’s session. On daily scale, the index has been bounced back after sensing support from ‘Breakaway Gap’ that usually acts as a potential buying opportunity. The index is expecting to continue its bullish momentum and find resistances that are placed at 3,213.39 and 3,435.60 levels respectively. The index has witnessed a steep reversal after kissing the 150 days Exponential Moving Average. RSI is trading at 46.54 levels that signal for a neutral stance while Awesome oscillator is trading in an oversold zone. Although Awesome oscillator 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: Top gainer in PSU banks is trading at 268.70, 3.89% below from its previous close. The stock is trading near 50 days Exponential Moving Average. There has been a block deal of 546,113 shares on May 30, 2019.
- Allahabad bank: Major midcap PSU bank has gained 2.84% in today’s session. The stock is trading below 200 days Exponential moving Average. The bank has cut its lending rate by 5 basis points on May 13, 2019.
- Bank of Baroda: The stock is trading at 121.90, 2.75% above from its previous close. There has been a block deal of 724,588 shares on June 04, 2019. The bank has narrowed down its Q4 loss to Rs. 991.4 crores.