 "PSU Banks in focus: BoB, UBI among 5 stocks trading at key support levels")
Shares of state-run banks were in focus on Thursday after the Reserve Bank of India (RBI) left the key rates unchanged for the ninth time in a row in its bi-monthly policy meeting.
The RBI governor, Shaktikanta Das today said the Monetary Policy Committee (MPC) voted 4:2 in favour of leaving benchmark repo rate unchanged at 6.5 per cent and the policy stance as 'withdrawal of accommodation'.
Post which, the banking related indices - Nifty Bank and Nifty PSU Bank were seen trading with mild losses.
However, over the last few trading sessions, stocks of PSU banks have been under pressure amid the global market meltdown. Meanwhile, on the charts select PSU bank stocks are seen trading at crucial support levels, which could impact the near-term trend for these stocks.
Here are 5 such PSU bank stocks:
Bank of Baroda (BoB)
Current Price: Rs 242
Upside Potential: 9.1%
Support: Rs 238; Rs 227
Resistance: Rs 250
The Bank of Baroda stock has been trading below its short-term (20-day) Daily Moving Average (DMA) for the last two months. At present BoB stock is seen seeking support around the lower-end of the Bollinger Bands at Rs 238. Similarly, the stock is testing support around its super trend line on the weekly chart, which stands at Rs 227.
Given the oversold conditions at the counter, the stock may attempt to hold these support levels in the near-term. For the sentiment to turn favourable, the stock will need to trade above its 20-DMA at Rs 250 consistently; beyond which the stock can spurt to Rs 264. CLICK HERE FOR THE CHART
Bank of India
Current Price: Rs 120
Downside Risk: 16.7%
Support: Rs 117; Rs 116
Resistance: 122; Rs 125; Rs 130
Bank of India too is seen testing support around the lower-end of the Bollinger Bands on the daily scale and the super trend line on the weekly scale. The key supports for the stock stand at Rs 117 and Rs 116.
On its way up, the stock face multiple hurdles as it trades below all its key moving averages. The 20-DMA at Rs 122 and the 200-DMA at Rs 125 are the key hurdles. The up move at the counter seems capped around Rs 130. CLICK HERE FOR THE CHART
On the flip side, failure to hold the support levels can trigger an extended fall towards Rs 100 shows the weekly chart.
Indian Bank
Current Price: Rs 562
Upside Potential: 13.9%
Support: Rs 546
Resistance: Rs 590
The Indian Bank stock is seen testing support at its 20-WMA (Weekly Moving Average) - a level it has strongly defended since the breakout in June 2023. The 20-WMA currently stands at Rs 546.
Consequently, the stock has been making higher-highs on the weekly scale. As such, the stock may attempt an up move beyond Rs 633 levels - to near about Rs 640. Interim resistance for the stock can be expected around Rs 590 levels. However, in case, the stock breaks the current trend, it could dip to Rs 450-odd levels. CLICK HERE FOR THE CHART
Punjab National Bank (PNB)
Current Price: Rs 115
Downside Risk: 19.1%
Support: Rs 111; Rs 107
Resistance: Rs 125; Rs 127
PNB has witnessed a gradual down move after hitting a high of Rs 143 in early May. The stock has declined 19.5 per cent in the subsequent period. For the last four trading sessions, the stock is seen trading close to its long-term moving average - the 200-DMA at Rs 111.35. This also coincides the super trend line support on the weekly scale; below which near support for the stock is seen at the 50-WMA at Rs 107.
These support levels are crucial for the near-term trend of the stock. Break and sustained trade below the same can trigger a fall towards Rs 93 levels. Meanwhile, the upside for the stock seems limited with strong resistance likely around Rs 125 - Rs 127 levels. CLICK HERE FOR THE CHART
Union Bank of India (UBI)
Current Price: Rs 124
Upside Potential: 15.3%
Support: Rs 123; Rs 121
Resistance: Rs 135
Union Bank of India is seen testing the super trend line support on the weekly chart at Rs 121. Similarly, the daily chart shows the stock is relying for support at the lower-end of the Bollinger Bands at Rs 123. As long as these supports are held, the stock may attempt to bounce back to Rs 135 - Rs 143 levels.
Whereas, break and sustained trade below Rs 121, can trigger a dip towards Rs 103 levels. CLICK HERE FOR THE CHART
