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OBC, Canara Bank: Two PSU bank stocks that look bullish on the charts

The stock of Oriental Bank on the weekly chart has formed "Inverse Head & Shoulder" with neckline in the range Rs 98 - Rs 99.

Avdhut Bagkar  |  Mumbai 

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Nifty PSU Bank index: The Nifty PSU Bank index had consolidated around its 100-day moving average (DMA) located near 2,966 – 2,960 levels before crossing the high (3,050) of Symmetrical Triangle as per the daily chart pattern. Earlier, the index had witnessed selling pressure above 3,000 levels, as it could not close strongly as per chart. However, this time around all major moving averages, 200-DMA and 50-DMA are supportive of upside. That said, the index faces resistance at 3,150 and 3,240 levels.

Nifty-PSU

State Bank of India (SBI): The stock is witnessing pressure around Rs 300 level, and any move above would eventually see more selling. However, a strong close with follow-up buying may trigger breakout in this stock, chart patterns suggest. The 200-DMA is rising along with 100 DMA & 50 DMA, thereby building lower side support. On the monthly scale, the stock attempting to close above the trendline resistance of Rs 270.

CANARA BANK: The stock is on the verge of making positive crossover of 100-DMA with 200-DMA in the daily chart. The said crossover indicates change in trend upward as it's called "Golden Crossover". The range of Rs 259 - Rs 255 would then act as support for immediate trend, charts suggest.

The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as the 50-day moving average) or resistance level

ORIENTAL BANK: The stock on the weekly chart has formed "Inverse Head & Shoulder" with neckline in the range Rs 98 - Rs 99. The current market price of Rs 93 indicates pressure around Rs 94 - Rs 95, reversal level of last two highs. On the other side, 50 DMA in process of positive crossover with 200 -DMA, a golden crossover suggests chart. A breach of 200-DMA by 50-DMA can see more buying in this counter. In such a scenario, the stock can hit Rs 105 – 108 levels.

First Published: Wed, December 19 2018. 11:30 IST
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