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  • Jun 9, 2022 - The Nifty PSU Bank Index is in a Sweet Spot. Time to Buy?

The Nifty PSU Bank Index is in a Sweet Spot. Time to Buy?

Jun 9, 2022

The Nifty PSU Bank index has corrected ~20% from the highs of 2,989, touched in April 2022.

There have been a series of 20% falls and rise in the last 6 months.

So, will history repeat itself? Is the PSU Bank index headed for some gains?

Nifty PSU Bank Daily Chart

 

As can be seen from the chart above, the bulls came to rescue at ~20% fall and this is the third time the bulls are grabbing the opportunity.

The consolidation and reversal in the recent momentum confirms that history is repeating.

The breakout, retest and bullish momentum further indicate the recent low of 2,391 can be the short-term bottom for index.

Moving Average Convergence Divergence (MACD) in the below panel confirms the bottom as the positive crossover of averages and histogram trending above integer line is the sign of bullish tone.

Bulls should accumulate PSU Bank stocks for short-term.

Considering the previous rise, 2,800-2,900 can be on cards in coming months.

At present, the Nifty PSU Bank index is trading at 2,565 level, down 0.8%.

Yesterday, I also shared an updated on the Bank Nifty index and how there's an opportunity for traders.

I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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