SBI can rally to a new high, charts show; Canara Bank, J&K have 8% upside

The Nifty PSU Bank index needs to cross 2,850 to indicate further strength

NIFTY PSU BANKS (NIFTYPSUBA)
Outlook: Needs to cross 2,850

Indeed, the index crossed the 50-day moving average (DMA) at 2,700 levels with a strong positive sentiment, but unless the next resistance of 2,850 does not get conquered, the upward breakout may see profit booking, as per the daily chart. An up move above the said hurdle may see 3,000 mark. The Moving Average Convergence Divergence (MACD) has crossed the zero line indicating an upward momentum. CLICK HERE FOR THE CHART
 
State Bank of India (SBIN)

Likely target: Rs 550
Upside potential: 8%

After crossing the100-DMA at Rs 466, the shares of State Bank of India managed to successfully conquer Rs 487, which is its 50-DMA. This momentum suggests a robust underneath strength which is likely to see further bullish upside towards a new all-time high of Rs 550 levels. The immediate closing basis support for the stock comes at Rs 500 levels. The Moving Average Convergence Divergence (MACD) has overcome the zero line indicating a positive direction ahead. CLICK HERE FOR THE CHART

 
Canara Bank (CANBK)
Likely target: Rs 240
Upside potential: 7.50%

The shares of Canara Bank have firmly reversed, holding the support of 200-weekly moving average (WMA) placed at Rs 191. This behavior reflects a robust bullishness and the stock may make an effort to cross the resistance of Rs 224, according to the weekly chart. Once this succeeds, the trend may see sharp upside in the direction of Rs 240 levels. The immediate support comes at Rs 218 and Rs 211 levels.  CLICK HERE FOR THE CHART
 
The Jammu & Kashmir Bank Limited (J&KBANK)
Likely target: Rs 46
Upside potential: 10%

The stock conquered the significant resistance range of Rs 41 to Rs 39 levels, according to the daily chart. This positive move assists in breaking out on the upside indicative of a bullish rally towards Rs 46, a jump of over 10 per cent. The immediate support comes at Rs 39 levels. The MACD crossed the zero line reflecting a positive bias. CLICK HERE FOR THE CHART
 
Bank of Baroda (BANKBARODA)
Outlook:  Needs to conquer and sustain above 200-DMA with strong volumes

This is going to be the third attempt for the stock to cross the 200-WMA placed at 91.50 levels. It did manage to overcome the respective hurdle twice, however failed to uphold the positive bias. A decisive move with strong volumes may see a breakout above 200-WMA towards Rs 100. The immediate support comes at Rs 87 and Rs 84 levels.  CLICK HERE FOR THE CHART