Trade rationale

Other – Study mentioned in Notes Below

After a recent stellar rally in PSU banks, they lost some gains and remove late buyers which is a quite healthy sign for the ongoing uptrend. Today BAnk of Baroda came near 50 DMA on daily charts and over a lower time frame chart, we can observe the formation of an ending diagonal accompanied with bullish divergence on RSI and RSI isn't getting oversold on lower time frames. This evidence is helping us to reach a conclusion that a medium-term bottom is placed.