Nifty PSU Bank shines, lifts major indices up

Week has kicked-off on a positive note for the Indian stock markets where both Nifty and Sensex opened with a gap-up and witnessed gradual upside making new all-time high levels. Even the broader market indices bounced back from the previous close and are trading more or less trading in line with the benchmarks. On the sectoral front PSU Bank is leading with 2.9 per cent gains which has lifted the markets to trade in green.  

SBIN which holds 70.33 per cent in Nifty PSU Bank has surged 3.1 per cent pulling the index up. Further Bank of Baroda which forms 9 per cent is 2.3 per cent up and Canara Bank which forms 3.6 per cent in the index is the top gainer in the index, registering 4 per cent growth at 13:12 Hours.  

On the monthly time frame, Nifty PSU Bank index traded in consolidation at the downside for four months from April to July, which can also be termed as trading in a range of 2645 to 3100 as per short term view. The index has breached its range and also its downward sloping trendline breakout on the daily time frame. The index had attempted a breakout earlier on August 6 but had witnessed a pullback of up to 38.2 per cent retracement level. Hence, breakout with rising volumes and 14-period RSI positive crossover at 60 suggest some more upside in near term.