No one could deny the fact that political instability in an economy keeps the investors on tenterhooks and no clear majority of Chowkidaar party in Haryana was enough to active the bears on the auspicious day of Dhanteras. The Indian benchmark opened on a gap up note at 11,646.15 levels and continued to trade lackluster but started moving south after slipping below the psychological support of 11,600 levels to a low of 11,490.75 levels but stellar earnings posted by India’s largest PSU Bank SBI triggered the bulls and index recouped all its losses and retained above 11,600 levels. Out of 2139 stocks, 718 are advanced, 1024 are trading in red and 397 are unchanged. On indices upfront, sectors are trading mix while Nifty PSU bank gained the most, currently trading at 2,290.85, 2.90% above from its previous close. On daily scale, the index is trading near the kissing distance of its potential ‘Supply’ zone that is placed in a narrow range of 2,314.04-2,337.58 levels. The counter is trading below 89 days (High-Low) Moving Average. RSI is trading at 49.84 levels and hinting for continuation of stagnancy. Stochastic oscillator is entering into oversold zone. Although Stochastic 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.
- State Bank of India: Stock with highest free float market capitalization in PSU Bank is trading at 281.85, 7.37% above from its previous close. The stock has reported 3-fold jump in profits to 3,012 crores. Asset quality has been improved.
- Union bank of India: The stock is trading at 53.05 levels, 3.11% below from its previous close. The bank has agreed for merger with Andhra Bank and Corporation Bank. The stock is trading near its 52-weeks low levels.
- Canara Bank: The stock is trading at 193.04 levels, 3% above from its previous close. The counter is trading above 30 days Exponential Moving Average. The bank has reduced the savings rate on deposits by 25 basis points.