Rome was not built in a day neither it’s an easy walk to come and cross the life-time high formed by the Indian benchmark. It says that ‘Nifty50 usually trade in the phase of ‘Accumulation’ before halting the previous life-time levels. The Indian benchmark is moving very decent to north in order to reclaim their previous highs bus has sensed some long liquidation led by hitting the resistance of 11,900 levels. The index was opened on a gap up note at 11,883 levels but continued to witness selling pressure and slipped to an intraday low of 11,784 levels. However, the index reclaimed its positive momentum after breaching the psychological resistance of 11,800 levels. Almost all indices are trading in green while Nifty PSU Banks have added 3.42%, currently trading at 2,403.3 levels, 76.80 points up from its previous close. On daily scale, the index is trading near the edge of ‘Inverted Flag’ pattern that will act as a potential ‘Supply’ zone for the counter. The index is trading below the ‘Death Crossover’ that will continue to keep the bears alive. Stochastic oscillator is entering into oversold zone. RSI is trading at 57.15 levels but likely to sense resistance from 60 levels. . 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.
- Central Bank of India: Top gainer in PSU banks is trading at 19.95 levels, 11.14% below from its previous close. The management of the bank has approved for fundraising of 3,353 crores by allotting preferential equity to government.
- State Bank of India: Largest PSU bank as per free float market capitalization is trading at 287.20 levels, 2.42% below from its previous close. The bank has reported 3-fold jump in net profits. Asset quality has been improved.
- Syndicate Bank: The stock is trading at 27.02 levels, 6.42% above from its previous close. The management of the bank has reported that the recovery of Rs.4,000 crores is expected in current fiscal year.