After a stalwart rally in the Indian market as the index gained almost 9% as the booster shot from PMO by reducing corporate tax slab to 22% and GST rates, a consolidated move was expected by the market. The 50-stock bundle opened on a flat note at 11,590.6 levels and continued to trade lackluster in a narrow range of 11,539.2-11,655.05 levels while a cool-off in standard deviation was the requirement of the market. Zee Entertainment jumped 5% after Essel group sold pledged shares of promoters for Rs.200 crores. Out of 2131 stocks, 794 are advanced while 958 are trading in red. On indices upfront, all sectors are trading mixed while Nifty PSU Bank lost the most, currently trading at 2,537.10 levels, 1.79% below from its previous close. On daily scale, the index opened at 2,574.55 levels and continued to witness selling pressure that got accelerated 2,563 levels. The index has formed a classic ‘Doji Star’ candle stick pattern that signals for indecisiveness in the sentiments of market participants. DMI’s are on the edge of convergence with ADX at 30.16 levels. RSI is trading at 52.16 levels showing no signs of divergence and oversold. Although RSI and Directional movement 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: PSU stock with highest free-float market capitalization is trading at 305 levels, 2.74% below from its previous close. There has been a block deal of 218,732 shares on Sep 23, 2019.
- Canara Bank: Top loser in today’s session is trading at 205.25 levels, 2.93% below from its previous close. The bank has recently touched its52-weeks low at 187.20 levels. The bank has also invited bids to sell stake of 30% in Canfin Homes.
- Bank of Baroda: The stock is trading at 99.65 levels, 0.94% below from its previous close. The bank will raise Rs. 1,132 crores under ESP scheme.