Are you looking to buy in market crash? Bonanza picks 3 PSU bank stocks

Drumil Vithlani, technical analyst at Bonanza is bullish on Canara Bank, Union Bank of India and Bank of India, and expects up to 27 per cent upside on these 3 PSU Bank shares from here.

The Nifty PSU Bank index, which hit a fresh life-time high at 9,093.65 in trades yesterday, has taken a sharp U-turn and plunged over 4 per cent from the summit to an intra-day low of 8,705.45 in trades today, January 21, 2026.  As of 12:15 PM, the NSE PSU Bank index was down 0.9 per cent at 8,788, while the NSE benchmark Nifty 50 quoted with a loss of 0.4 per cent at 25,040 levels.  Despite the recent dip, the Nifty PSU Bank index remains a key outperformer, and has gained around 2.5 per cent thus far this month. The index has rallied as much as 30 per cent in the last five months. In comparison, the Nifty has declined over 4 per cent so far in January 2026, while holding a net gain of 2.5 per cent in the last five-month period.  ALSO READ | Nifty tests 200-DMA; on track for worst January show in a decade  Among individual stocks, Canara Bank, Bank of India and Union Bank of India have witnessed the strongest rally, and gained in the range of 41 - 48 per cent in the last five months.  Drumil Vithlani, Technical Analyst at Bonanza remains bullish on the sector, and projects up to 26.6 per cent potential upside for these three PSU Bank shares. Here's why. 

Technical outlook on Canara Bank, Bank of India, Union Bank of India:

Union Bank of India

Current Market Price: ₹172 

  Union Bank stock has delivered a symmetrical triangle breakout with strong volume, indicating a potential upside target above ₹200 levels, says Drumil Vithlani. This translates into an upside potential of 16.3 per cent from current levels.  "The stock is holding firmly above ₹160 support zone, strengthening the bullish structure. On the weekly timeframe, price is trading above all major EMAs, confirming both short-term and long-term bullishness," explains Vithlani. 

Bank of India

Current Market Price: ₹158 

 

  Bank of India share has delivered a rounding bottom breakout with strong volume, clearly indicating renewed buying interest. The stock is trading comfortably above all major EMAs on the weekly timeframe, confirming both short-term and long-term bullishness, says the analyst from Bonanza.  "The support zone lies at ₹130 – ₹135 range, while the upside potential remains attractive with an expected target of ₹200 or more in the coming phase, says Vithlani. This implies a potential upside of around 26.6 per cent from here. 

Canara Bank

Current Market Price: ₹151 

 

  Canara Bank stock is in a strong uptrend and, after a rounding bottom breakout, has delivered a sharp rally. A short-term consolidation is expected, making buy-on-dips near ₹140 favourable, says Vithlani.  "Major support lies at ₹130, while resistance is around ₹165; a breakout could open upside targets of ₹175 – ₹180 or higher," said the analyst. Thus implying a potential upside of over 19 per cent from current levels.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.