The Truth About PSU Banks Should You Invest or Exit? - K Karthik Raja Rupeedesk Share Market Training
The Truth About PSU Banks Should You Invest or Exit? - K Karthik Raja Rupeedesk Share Market Training
The Truth About PSU Banks Should You Invest or Exit? - K Karthik Raja Rupeedesk Share Market Training
PSU Bank Sector Analysis - 08.03.2025
K Karthik Raja (Market Educator & Technical Analyst)
MCA | MBA | M.Com | MSc Psychology | PGJMC | CST | MDAT | CFA Pursuant Key Factors Affecting & Reasons:
The Nifty PSU Bank index has seen significant movement over the past few weeks, driven by multiple macroeconomic and sector-specific factors:
- Interest Rate Policies: RBI's stance on interest rates continues to impact banking stocks.
- Liquidity Flow: Institutional investors' activity remains crucial for price action.
- Economic Growth Trends: Credit growth and government spending on infrastructure are key contributors.
- Global Market Sentiment: The impact of global banking trends on domestic banks.
Key Watch:
- Support & Resistance Levels: Immediate support is seen around 5089, with resistance at 6818.
- Moving Averages: The 50-day MA is at 6818.64, while 200-day MA holds at 4469.73.
- RSI: Currently at 41.30, indicating a neutral to slightly bearish momentum.
- MACD: Negative divergence suggests possible short-term downside pressure.
- ADX: At 29.49, suggesting a strong trend presence.
Volume Analysis:
- The weekly volume is recorded at 810.973M, indicating active participation.
- The buying momentum appears to have weakened compared to the previous rally.
- A higher volume near support levels could signal a reversal opportunity.
Dow Theory Chart Analysis & Observations:
- Higher Highs & Higher Lows: The long-term trend remains bullish despite the current pullback.
- Recent Pullback: The market has corrected from its recent peak, a healthy retracement after a strong rally.
- Breakout Confirmation: A move above 6597 with strong volume can resume the uptrend.
Stocks to Watch:
1. State Bank of India (SBI) – Holding key support levels, potential bounce-back.
2. Bank of Baroda (BOB) – Strong fundamentals, nearing critical moving average.
3. Punjab National Bank (PNB) – Testing crucial support; watch for trend confirmation.
4. Canara Bank – Good relative strength; needs volume confirmation.
Market Insights: Short-term & Long-term View:
- Short-Term: Consolidation expected with support around 5089, resistance at 6597.
- Long-Term: Structural uptrend intact, potential for new highs if economic conditions support.
- Key Trigger: A decisive breakout above 6818 with strong volume can confirm fresh bullish momentum.
Disclaimer:
This analysis is for educational purposes only and should not be considered as investment advice. Please do your own research or consult a financial advisor before making investment decisions.
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