PSU banks drag markets down by tanking 3 per cent

Bhagyashree Vivarekar
/ Categories: Trending, Markets, DSIJ News, PSU

Indian stock markets retreated after three consecutive upticks on Tuesday, all thanks to the PSU banks. Nifty PSU Bank index plunged more than 3 per cent after six straight upbeats, dragging the entire market downwards. A pullback after a breakout or a total turnback is just a matter of time.

Bank of India which holds 2 per cent weightage in the index was the top loser with 5 per cent and more losses. Union Bank and Bank of Baroda which hold 2.6 and 10.2 per cent were also among the top losers shedding more than 3 per cent each. PSU Bank major SBI too lost 2.5 per cent dragging the entire sector down. All others traded in the red.

Technically, PSU Bank index had witnessed a downward sloping trendline breakout at 2,945 on May 25. The index surged for a day near its 100-day EMA level and retreated on Tuesday as if for a pullback. The index has retreated up to the trendline level of 2,930. If it takes support at the trendline and bounces back, we hold 3,015-3,055 followed by 3,085-3,100 as the resistances. However, if the pullback continues in the form of profit booking, we hold 2,900-2,850 as immediate support, followed by 2,800 per share.

Previous Article Cords Cable spikes on winning orders worth Rs. 40 crore
Next Article Q4FY18 profit of Force Motors rises by 10 per cent
Rate this article:
No rating

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR