The initiatives taken by U.S. and China to curb the ongoing slowdown that a meeting will be held in October on negotiating the tariff stipulations after both the economies saw contraction in GDP and uptick in initial jobless claims has fueled the global and Asian markets that has also pushed the domestic index. The index opened on a marginal negative note at 10,936 levels and continued to move higher with lesser momentum but started witness some long liquidations after failing to sustain above the psychological resistance of 11,000 levels and currently trading at 11,004.65, 0.53% above from its previous close. Quess corp added 6% after Competition Commission of India (CCI) cleared acquisition of stake by Amazon. Out of 2129 stocks, 1183 are advanced, 539 are trading in red and 407 are unchanged. Almost all indices are trading in green while Nifty PSU Banks gained the most, currently trading at 2,418.05, 1.54% above form its previous close. On daily scale, the index has been bounced back after forming a ‘Double Bottom’ that signals for a strong reversal. Bollinger Bands have shown lower strength while re-test of the previous lows. Bollinger %b didn’t slip below zero levels. Potential resistance is placed at 2,650.58 levels. Although Bollinger twins 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 gainer in PSU Banks is trading at 66.05 levels, 3.69% above from its previous close. The bank has reported an increase in NII income at Rs. 3,520.59 crores this quarter. The stock is trading below 200 days Moving Average.
- Canara Bank: India’s leading PSU Bank is trading at 196.55, 2.66% above from its previous close. The bank has invited bids to sell 30% stake in its subsidiary Can Fin Homes. The stock has made a 52-week low of 190.36 levels.
- Punjab National Bank: The stock is trading at 62.45 levels, 1.96% above from its previous close. The bank has approved for amalgamation with Oriental BANK OF Commerce and United Bank of India.