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SBI, PNB: Should you buy PSU banks after RBI kept interest rate unchanged?

NIFTY PSU BANK: The index has broken 2532 level, which is its 100-day moving average (DMA) as per the daily chart. This reflects a minor weakness. Going ahead, if ths 50-DMA, which is placed at 2400 levels gets broken, more selling pressure is expected. Currently, both the technical parameters - Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) - are trading with negative crossover and indicate weakness. On the higher side, the 200-DMA located at 2,800 will act as a resistance. CLICK HERE FOR THE CHART

State Bank of India (SBIN): The counter faces a strong resistance at Rs 360. It did manage to recover from its earlier lows and hit Rs 351 after the corporate tax cut in September. The stock has a strong support at Rs 310 and till this level is held, the trend should remain positive. The RSI has come out of overbought condition, trading around 50 value with a negative crossover. The daily chart also reveals a negative crossover of 100-DMA with 200-DMA. If SBI breaches Rs 310 on the downside, a slide towards Rs 280 and Rs 265 may be expected. CLICK HERE FOR THE CHART


Punjab National Bank (PNB): The stock appears weak on the charts as it has breached the trendline support at Rs 75, as per the weekly chart. The inability to defend its 100-DMA seems a tough. After crossing 100-DMA in November 2019, PNB has failed to sustain the momentum. Going ahead, if Rs 58 which is the support for this stock gets broken, it may then see Rs 50 and Rs 45 levels in the days ahead.  CLICK HERE FOR THE CHART


Canara Bank (CANBK): The weekly chart shows an “Inverse Head and Shoulder” breakout above Rs 220. The stock is witnessing selling pressure on higher levels. Even on the daily chart, where RSI trades with a negative crossover along with MACD, the price correction seems legitimate. One can have a positive bias considering Rs 185 as an immediate support for an upside towards Rs 240 and Rs 255 levels. CLICK HERE FOR THE CHART


Bank of Baroda (BANKBARODA): The stock is waiting for a breakout above Rs 110, which is its 200-DMA. On the other hand, till it holds Rs 90, the optimism should stay. Voume picture, however, does not give much confidence. That said, some buying may appear in the range of Rs 90 – Rs 93. The immediate support comes at 95.45, which is its 50-DMA. The MACD has made a negative crossover last Friday, which is trading above the signal line.CLICK HERE FOR THE CHART

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