The NiftyPSU Bank index slumped 450 points in the last two months, correcting 14 per cent from the January high of 3,224.50. The overall trend for the index has been sluggish with a bigger range of 3,400 – 2,500 levels, weekly chart suggests.
The index is trading below 200-day moving average (DMA) on the daily and weekly scales. The scenario depicts its inability to establish strong delivery base volume at lower levels as per the charts.
All the major technical indicators such as RSI (Relative Strength Index (RSI), Stochastic and MACD (moving average convergence and divergence) are trading in the oversold region. To scale further ground, the index needs to move past 2,800 level. A possible crossover in an oversold territory would aid for further rise to the immediate resistance of 2,900 level.
Here's a look at what technical charts indicate for key public sector banks (PSBs) -
Corporation Bank: The stock rallied 20 per cent to Rs 30.20, crossing resistance of all moving averages. The 200-DMA at Rs 26.90, 100-DMA at Rs 26.55 and 50-DMA at Rs 27.40 stay as immediate support levels. The current levels are witnessing profit booking above Rs 30 which may prevail till Rs 34 level. The overall trend remains positive till the stock hold the support of moving averages, chart suggests. Click here for the chart
Allahabad Bank: The overall trend on the chart indicates consolidation in the range of Rs 50 – Rs 35 on the medium term perspective. The trend line breakout at Rs 44 indicates a positive upside as per the daily chart. The immediate support comes at Rs 40 with stronger level to be at Rs 35 level. The profit-booking may arise above Rs 50, as per daily chart. Click here for the chart
Punjab National Bank: It has remained an underperformer form the beginning of the year, falling more than 20 per cent without any possible revival in the medium-term trend. Every rise has witnessed selling pressure resulting in lower levels. The technical indicator MACD (moving average convergence and divergence) has made a positive crossover below zero, a sign of a positive turnaround. On the other hand, the stock needs to cross Rs 78 to enter in a strong upward trend as per chart. Click here for the chart
Bank of India: The stock isn’t showing any sign of a positive trend. It lacks buying momentum as investors' attention stays low with slow volumes. Most of the technical indicators are trading in an oversold region in the weekly scale. The support comes at Rs 73 and resistance falls at Rs 89 level. Click here for the chart
Union Bank: The weekly chart shows a normal build of volumes with trend remaining flat. Rs 62 may act as support with immediate resistance to come in at Rs 78 level. The overall trend doesn't indicate any move as price remains in no trade zone. Click here for the chart
Indian Overseas Bank: The stock is continuously trading below 200-DMA on the daily chart, currently located at Rs 14.50 level. The stock has not crossed the same average in the last one year. The weekly chart shows a fall in prices without any substantial recovery. The trend may change only above Rs 14.50; a crossing of significant moving average may boost buying. The immediate resistance comes in at Rs 14 and support at Rs 12 level. Click here for the chart
UCO Bank: The 200-DMA falls at current levels of Rs 18.90. It needs to stabilise, decisively above the same to build positive sentiment. The major buying will resume above Rs 24 with strong buying support staying at Rs 15 level, chart suggests. Click here for the chart
Andhra Bank: The stock is having price resistance in the range of Rs 26 – Rs 25, where it is currently trading. It needs to conquer Rs 26 to regain the positive momentum to move towards the next resistance of Rs 29. Support comes in at Rs 22, as per the daily chart. Click here for the chart
United Bank of India: The stock is trading near to a single digit zone of Rs 10. The volumes have dried substantially, as it lost investors’ attention. It needs to cross Rs 13 – Rs 14, which is its resistance level. Support comes in at Rs 8, near its earlier levels in October last year. Click here for the chart
Central Bank: The weekly chart shows a formation of a double bottom with the breakout above Rs 33 levels. The current trend signifies an immediate rally towards the same. The next resistance level comes at Rs 39. Support to stay at Rs 27 level. Click here for the chart
Syndicate Bank: The stock has faced resistance around its 200-day moving average (DMA) at Rs 42 level in January. The immediate trend-line resistance falls at Rs 35 with support at Rs 31 level, as per daily chart. Click here for the chart
Bank of Maharashtra: The weekly chart shows “Inverse Head and Shoulder” pattern with a breakout at Rs 14. The overall trend looks bullish with stock trying to scale above its 200-DMA at Rs 13.20 level. The support comes at Rs 11.30 level, as per daily chart. Click here for the chart