Sell PSU Banks

With free fall from PSU banks have triggered bearish signal with most of the PSU banks. The fall has dragged Nifty 50 by 55 points and Nifty Bank by 290 points. Both Nifty 50 & Nifty Bank indices are manage to stay in the bullish zone, but there is a possibility it will be dragged into bearish mode if the things continued.

Here are the some of the stocks which are showing the weakness.

Allahabad Bank:

During the last one month the stock has rallied from 50+ levels t o 84+ levels with profit of more than 70%. Now it is time of overbought and take some profit. Over the last one week, the stock continue to make lower low in the daily candle stick chart. It is highly unlikely that the stock will continue the down trend. One can short this will stop loss of 80+ levels.

Allahabad Bank showing bearishness in chart
Allahabad Bank showing bearishness in chart

AxisBank:

AXISBANK logoThis one is outside of PSU Bank category, but worth noting it. Axisbank went down by more than 3% to close below 540 levels. Over the last 4 trading days the pace of the fall was accelerating. It has high chance that the fall will continue in the near future. One can short Axisbank by keeping the stop loss of 570 levels.

Axisbank showing bearish view candlestick chart
Axisbank showing bearish view candlestick chart

Canara Bank:

Another public sector bank with exactly same pattern as Allahabad Bank where the stock has rallied over the last one month and find tough time in the last one week. The stock went down by more than 3% to close around 250 levels. It is showing overbought signal in the momentum chart. It is highly unlikely that the stock will continue the down trend. One can short this with stop loss of 260 levels.

Canara Bank showing bearishness in candlestick chart
Canara Bank showing bearishness in candlestick chart

Union Bank of India:

UNIONBANK_logoUnion Bank was successfully able to take over the resistance of the 140+ levels, however it could not sustain the higher levels. Over the last 5 trading sessions, the stock continue to make lower low and close below important level of 135. One can short this with stop loss of 140 levels.

Unionbank showing bearishness in candlestick chart
Unionbank showing bearishness in candlestick chart