Indian equity markets started the week on a high note, with the Nifty50 index touching an all-time high of 25,925.80. While most sectors traded in the green, the Nifty PSU Bank Index was the star performer, registering its sharpest single-day gain in over two months.
The Nifty PSU Bank Index soared nearly 2.5% on Monday, reclaiming the 6,800 level. Notably, all the constituents of this index were trading in green, showcasing widespread optimism within the public sector banking space.
The index has formed a double bottom pattern on the daily chart, with the neckline around 6,810. A sustained break above this level could trigger a significant bullish breakout. Additionally, it has reclaimed its 20-day Simple Moving Average (SMA), and the 14-period RSI has shown a positive divergence, both positive signals for future performance. On the technical front, the MACD also experienced a positive crossover on the daily chart, further confirming bullish momentum.
While the Nifty PSU Bank Index is down 2.09% so far in September, it has gained an impressive 20% year-to-date in 2024. The recent positive indicators suggest that the index may be gearing up for more upside, especially if it sustains above the crucial neckline of the double bottom pattern.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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