Is Nifty PSU Bank nearing an interim peak? Keep an eye on this pivot point

In a past instance, the Nifty PSU Bank corrected over 23 per cent in the following two months after the index entered overbought zone on the monthly scale.

The Nifty PSU Bank index has witnessed a phenomenal run so far this September quarter. The index of state-run banks has zoomed over 22 per cent when compared with a 3.7 per cent gain on its counter-part Nifty Private Bank index, and a 4.8 per cent rally on the benchmark Nifty50.

Among individual shares, Bank of Maharashtra has zoomed 67 per cent. Central Bank of India and Indian Overseas Bank rallied 56 per cent and 54 per cent, respectively. Bank of India, PNB, IDBI, Indian Bank, PSB, UCO Bank and Union Bank are the other major movers - up in