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SBI, Bank of Maharashtra: PSU bank stocks are showing a breakout formation

banks, psbs
Shares of public sector banks were in focus on Wednesday, rallying up to 6 per cent on the National Stock Exchange (NSE) in intraday deals. Among individual stocks, Punjab National Bank jumped 5.2 per cent to Rs 34.6 apiece on the NSE in the intra-day trade.

ALSO READ: Banks may restructure Rs 8.4 tn loans as economy sputters: India Ratings

The rally comes on reports that Prime Minister Narendra Modi’s office has asked officials to speed up the process of trimming government stakes in at least four primarily state-owned banks within the current fiscal year. READ ABOUT IT HERE

Here are the key levels for frontline public sector banks you should keep a tab on.

NIFTY PSU BANK: The index has managed to cross the neckline of “Double Top”, as per the daily chart. The neckline stays at 1.425 levels, which was conquered on Wednesday with a gap-up. This scenario needs to hold for the index to cross 1,500 mark. Once breached, the momentum can take it higher to 1,600 in the sessions ahead. The support stays at 1,400 levels. CLICK HERE FOR THE CHART

 

State Bank of India (SBIN): The overall trend is turning bullish for State Bank of India (SBI) with a formation of “Higher High, Higher low” on the charts. This suggests a sustainable upside that may see a gradual rise in coming sessions. As we can see on the daily chart, a crossover of 50-days moving average (DMA) with 100-DMA has further fueled the positive sentiment. With a support of Rs 188.70, which is it 50-DMA, SBI can attempt move towards Rs 220 levels in the near term. CLICK HERE FOR THE CHART

 

Bank of India (BANKINDIA): As per the daily chart, the counter has been unable to cross the 200-DMA hurdle around Rs 56 over the past few weeks and corrected. The current chart pattern indicates sideways movement in the days ahead with an overall positive bias. The stock is trading below 50-DMA around Rs 48.50, which is now the immediate hurdle for the stock. From a broader perspective, till Bank of India trades above Rs 43 on a closing basis, the positive sentiment may persist.   CLICK HERE FOR THE CHART

 

Bank of Maharashtra (MAHABANK): With a “Golden Cross” breakout above Rs 13, Bank of Maharashtra is ready to scale new highs. The initial resistance is at Rs 15 and then at Rs 17.50 levels. The volumes have remained subdued over the past few sessions, but may pick up in case of a breakout. Support stays at Rs 11 levels. The stock may see buying momentum come back even if it falls to Rs 11.70- Rs 11.80 levels. CLICK HERE FOR THE CHART

 

Punjab National Bank (PNB): To breakout on the upside, Punjab National Bank (PNB) needs to close firmly above the resistance of Rs 35 levels. A formation similar to “Double Top” has dismantled the upside potential and severely dented the positive sentiment. A gap-up trade on Wednesday indicates a possible turnaround in the strength that can help it go past the resistance level. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators also hint at better days ahead for this stock.  CLICK HERE FOR THE CHART



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