At present, traders are advised to keep following stock-specific approach
How should you trade the financial sector stocks after the RBI's liquidity measures? Are the banking stocks likely to gain ground in the days ahead? Here is what the charts suggest.
Negative convergence may lead to severe selling pressure and the price may stay weak for a month to a year.
Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
Shares of Housing Development Finance Corporation (HDFC) tumbled nearly 3 per cent to Rs 1,655 levels on the BSE on Monday morning before recovering some of the lost ground
The RSI on Voltas' stock is also on the rise and has signaled a buy
Cipla may see profit-booking around Rs 360 to Rs 367 levels, as per the weekly chart.
While considering a larger outlook, one needs to look at signals wherein the change in trend holds over a month or a quarter.
Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
Until there is a major shift in the mood of traders and investors, this segment may continue to show deterioration in value.
Maruti's stock price has risen more than 10 per cent with significant rise in volumes
Despite the stimulus measures by the government and the Reserve Bank of India (RBI), financial sector stocks, including those of non-bank finance companies (NBFCs) have taken a hard knock
A trader who looks for short-term gains, hold positions for a week or fortnight.
The trend looks weak below 5,000 levels for the Nifty Auto index. Although the current formation claims consolidation with lower support around 4,600 levels, the trend remains short on upward rallies
For Nifty Bank, the immediate resistance comes in the range of 20,500 to 20,000 levels
Nifty PSU Bank index is showing a consolidation in the range of 1,600 to 1,200 levels. On the other hand, 22,000 mark is crucial for Nifty Bank.
The RSI Oscillator is showing strength in the stock
Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
The reversal may see selling pressure at higher levels. However, the downside significant supports stand still in these corrective moves.
While taking a bigger perspective on the trend, the daily volume chart might not perfectly depict the scenario. The weekly, monthly or year volumes chart facilitate in taking a call on the same