A halt in the production of crude oil after drone attacks on Saudi Armaco have fueled the U.S. West Texas Intermediate Crude oil futures by 8-10% after the crude oil was going through a lot of pessimism but pressured the global and domestic indices. A negative opening was not expected by the Indian benchmark index as it had managed to close above the psychological resistance of 11,000 last week but an opening below 11,000 levels with a downfall of 0.7% that negated the optimism of the markets. After a gap down opening, the index managed to bounce back led be sensing support from 10,950 levels and made an intraday-high of 11,052.70 levels but started sensing pressure at higher levels. Out of 2138 stocks, 905 stocks are advanced, 852 are trading in red and 381 are unchanged. All indices are trading mixed while Nifty PSU banks erased 1.16%, currently trading at 2,482.30 levels, 29.50 points below from its previous close. On daily scale, the index is trading in a ‘Symmetrical triangle’ pattern that signals for indecisiveness in the sentiments of market participants. The index is closing below 200 days Moving Average. Bollinger Bandwidth is hinting for lower standard deviation. RSI is trading near 45 levels and hinting for a squeeze in volatility which will be followed by breakout in volatility. Although Bollinger band width 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.
- State Bank of India: Stock with highest free float market capitalization in PSU banks is trading at 285.75, 2.04% below from its previous close. The bank will raise Rs. 3,465 crores by selling 4.5% stake in SBI Life Insurance.
- Syndicate Bank: Top loser in today’s session is trading at 30.85 levels, 1.44% below from its previous close. The bank is expecting Rs. 4,000 crore Non-Performing Assets. The stock is trading near 30 days Exponential moving Average.
- Bank of Baroda: The stock is trading at 98.90 levels, almost 1% below from its previous close. The bank is expected to raise Rs. 1,132 crores under Employee Share Purchase scheme.