Overbought or oversold? 5 PSU bank stocks on technical charts

Shares of PSU banks have rallied up to 24% thus far in FY26; here's what technical charts suggest for Bank of India, Indian Bank, Bank of Baroda, PSB and Central Bank of India.

Shares of PSU Bank are in limelight following SBI's strong Q1 show. India's largest state-run bank reported a reported healthy business growth and operational performance aided by treasury gains in the quarter ended June 2025.  SBI's Q1FY26 net profit grew by 12.5 per cent year-on-year (YoY)to ₹19,160 crore up from ₹17,035 crore in Q1FY25. The bank's interest income rose by 6 per cent YoY to ₹1,17,996 crore. Following this, shares of PSU banks attracted renewed buying interest in the market.  Meanwhile on the bourses thus far in the financial year 2025-26, PSU banks have witnessed a mixed trend. Data from ACE Equity shows that Indian Bank and Canara Bank have surged around 24 per cent each followed by a 20 per cent rally in Bank of Maharashtra, and 11 per cent in Punjab National Bank. Whereas the market leader, SBI stock has gained 7 per cent.  The Nifty PSU Bank index has gained 12.3 per cent in this period, while the NSE benchmark Nifty 50 index has rallied 4.5 per cent.  However, on the flip side, Punjab and Sind Bank shed plunged over 35 per cent. UCO Bank and Central Bank of India have shed 21 per cent and 16 per cent, respectively. Indian Overseas Bank is the other laggard. Against this backroung, here's a technical check on select 5 PSU Bank stock.   

List of Top 5 PSU bank shares Overbought or OverSold?

 

Bank of Baroda

Current Price: ₹244  Likely Target: ₹274  Upside Potential: 12.3%  Support: ₹242; ₹236; ₹234  Resistance: ₹249; ₹253  Bank of Baroda stock continues to sustain above the key 20-Week Moving Average (20-WMA), which now stands at ₹236. The daily chart shows likely support for the stock at ₹242, while the overall trend to remain favourable as long as the stock holds above ₹234. 

 

    In terms of overbought or oversold, the stock is seen trading in the neutral zone with a Relative Strength Index (RSI) reading of around 54 per cent. In general, a RSI reading below 30 is considered oversold, and a reading above 70 is said to be overbought.  On the upside, the stock needs to break and sustain above ₹249 - ₹253 resistance zone, for a likely rally towards ₹274 levels, suggests the long-term chart. 

Bank of India

Current Price: ₹113  Likely Target: ₹125  Upside Potential: 10.6%  Support: ₹109  Resistance: ₹119  Bank of India stock saw the formation of 'Bullish Marubozu' candlestick pattern yesterday. In this particular candle pattern, the stock open's near the day's low, and ends at the day's high, and is often considered as a positive (bullish) indicator. 

 

  That apart, key momentum oscillators on the daily chart have seen a positive crossover. Hence, Bank of India stock can potentially rally to ₹119 in the near-term, above which a spurt to ₹125 levels cannot be ruled out. The near-term bias is likely to be optimistic as long as the stock trades above ₹109. 

Central Bank of India

Current Price: ₹36.03  Likely Target: ₹32.50  Downside Risk: 9.8%  Support: ₹35.45; ₹34.80  Resistance: ₹36.80; ₹37.38  Central Bank of India stock has recently bounced back from oversold territory. The stock, however, continues to languish below key moving averages, and other key momentum indicators also placed in favour of the bears. 

    Technically, the short-term bias at the counter is likely to remain tepid as long as the stock trades below ₹37.38 levels, with near resistance visible around ₹36.80 levels. On the downside, the stock may drift back towards the calendar year lows around ₹32.50 levels, with interim support likely around ₹35.45 and ₹34.80 levels. 

Indian Bank

Current Price: ₹672  Likely Target: ₹725  Upside Potential: 7.9%  Support: ₹668; ₹650; ₹640  Resistance: ₹677  Indian Bank has been trading at record high levels in recent days. The stock's 14-day RSI has reached 67 levels, but other key indicators remain favourably placed. Hence, the stock may trade with a favourable bias going ahead. 

 

    The near-term bias for Indian Bank is likely to be upbeat as long as the stock holds above ₹668 levels; below which support for the stock can be anticipated around ₹650 and ₹640 levels, shows the daily chart.  On the upside, the stock may extend the rally towards ₹725 levels, with some resistance likely around ₹677. 

Punjab & Sind Bank (PSB)

Current Price: ₹28.28  Likely Target: ₹25.40  Downside Risk: 10.2%  Support: ₹26.30  Resistance: ₹29.70; ₹30.32  PSB stock continues to trade near the oversold zone, with a RSI reading of around 30 levels. The stock has shed almost 44 per cent from its March 2025 high of ₹50.50 levels. Even as the overall bias seems tepid, the medium-term chart shows presence of likely support for the stock around ₹26.30 levels; below which a dip to ₹25.40 seems likely.  Bias at the counter is likely to remain negative as long as the stock trades below ₹30.32 levels, with near resistance likely around ₹29.70.