SBI, Indian Bank: These PSB stocks are likely to rise, show charts

The government may infuse Rs 20,000 crore through the recapitalisation of bonds into state-owned banks.

Most public sector bank (PSB) stocks were trading in the red in the morning deals on Tuesday, a day after reports said that the government may infuse Rs 20,000 crore through recapitalisation of bonds into state-owned banks in the fourth quarter of the current fiscal year. READ MORE

Nifty PSU Bank index traded nearly 0.5 per cent lower at 1,429 levels with 7 out of 12 constituents trading in the red. 

Let's take a look at what charts indicate for the Nifty PSU Bank index and some of its constituents.

NIFTY PSU BANK: Till the index is trading above the support level of 1,360, which it has been protecting since last 12 weeks, the upside should see 1,814 levels. This is its 50-weekly moving average (WMA). The technical indicators, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are exhibiting mild strength; however the trend remains positive, as per daily and weekly charts. CLICK HERE FOR THE CHART

State Bank of India (SBIN): This counter is holding the support of 50-day moving average (DMA) on the closing basis, as per the daily chart. Till it defends the support, a reversal may be expected towards Rs 210 and Rs 217 levels. The weekly chart shows a buying momentum to emerge in the range of Rs 190 to Rs 180 levels - the range that earlier witnessed a buying and accumulation before breaking out. CLICK HERE FOR THE CHART

Bank of Maharashtra (MAHABANK): With a “Golden Cross” of 50-DMA and 200-DMA, the counter is ready to rise from a medium term perspective. The current support on a closing basis comes in at Rs 12 with RSI making a positive crossover, signalling a rally towards Rs 15 levels. The bigger trend shows near term move towards Rs 19 levels. CLICK HERE FOR THE CHART

Indian Bank (INDIANB): As the price made a positive crossover of 50-DMA and 100-DMA, every dip below 50-DMA has seen a strong buying momentum. This unveils the firm support provided by 100-DMA, currently placed at Rs 57.55 levels. The MACD is recovering after a small dip below the zero line and RSI has successfully made a positive crossover, suggesting a positive trend. The immediate rally may be expected in the direction of 200-DMA, placed at Rs 71 levels. CLICK HERE FOR THE CHART
 
The Jammu & Kashmir Bank Limited (J&KBANK): Currently, this counter is exhibiting a consolidation movement. The underneath strength remains strong as price trades decisively above the 100-DMA, placed at Rs 16 levels. A bigger breakout is expected above Rs 20, which is its 200-DMA. If that occurs, a rally towards Rs 28 cannot be ruled out in the near term. CLICK HERE FOR THE CHART