BSE See NSE See 45,079.55
446.90 (1%)

Nifty PSU Bank gives Falling Wedge breakout, gains nearly 1%

Bhagyashree Vivarekar
Rate this article:
No rating
Nifty PSU Bank gives Falling Wedge breakout, gains nearly 1%

The Nifty PUS Bank index had witnessed a significant Inverse Head & Shoulders breakout at 3,820 which started in April 2015. The breakout day was on October 25, where the index opened with a gap-up amid government’s capital infusion announcement. The index hit its 52-week high 4,335 on the very next day and witnessed profit-booking. Since then, the index has been trading with lower tops and lower bottoms, as if for a pullback.

Meanwhile, the index formed a 'falling wedge' pattern on the daily charts and witnessed a breakout at 3650 on January 17. The breakout was after the index took support at 61.8 per cent retracement level of the prior sharp upward rally. At the same levels, the index also took 200-day EMA support. Further, on January 18, the index witnessed a pullback and has re-tested the upper trendline yet again. The rising volumes and the 14-period RSI downward sloping trendline breakout at 43 suggest upside, but gradually. This is because RSI is quoting at 48 and would get into momentum only above the 55 level.

Thus, SBIN which holds 64.4 per cent weightage in the Nifty PSU index, has formed similar pattern on the daily charts and has thereby today re-tested its trendline breakout level at Rs 306. If the stock sustains above Rs 306-307 on a closing basis, it holds a potential for further upside.

Previous Article Dilip Buildcon bags EPC project worth Rs. 360.58 crore
Next Article ITC surges for third day in a row ahead of Q3 results

Please login or register to post comments.

webinar image