Thursday, 27 March 2014

The Myth of patterns - Similar patterns seen in most Public Sector Banks (PSB's)

The PSU banks have been laggards, Although broader Indices (NIFTY) has been outperforming along with the PSB's peers private sector banks. Now is this time to catch up for PSB's and some NBFC's ?

The similar pattern have occurred in most of the mid cap PSU Banks such as Oriental Bank of Commerce, UCO Bank, Andhra Bank and NBFC Reliance capital etc to name a few.

The pattern targets can be as much as height of the pattern. To know more about Cup & Handle pattern check out on investopedia (Source: http://www.investopedia.com/university/charts/charts3.asp).

The below are some of the Daily charts which provide the evidence of pattern breakouts. The magnitude of move can be swift as high volume breakout is seen.


Andhra Bank Daily Chart


UCO Bank Daily Chart


Reliance Capital Daily Chart


These are few counter which give as much as 10 - 15% anticipated returns in medium term.



Raju V Angadi
Equity Research Analyst


Disclaimer: This is just an view based on the research of individual for educational purpose. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in markets


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