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SBI, Bank of Baroda, PNB: Here's how you can make money in PSU bank stocks

SBI has a strong relevance of 200-weekly moving average (WMA), as it has never been decisively broken in the last one year

Avdhut Bagkar  |  Mumbai 

SBI, State Bank of India

The benchmark indices witnessed a sharp rally, rising over 3 per cent in the last week. The S&P rose 1353 points, or 3.65 per cent, to close at 38,024, hile the Nifty50 rose 391 points, or 3.54 per cent, to end at 11,246.

The overall trend was spearheaded by Bank, which soared 1620 points, or 5.80 per cent. The index witnessed strong buying on every new lifetime high levels. Along with private banks, investors showed keen interest PSU banks started showing the keen interest of investors with a jump in volumes and a change in trend.

PSU BANK (NIFTYPSUBA): The index needs to strongly hold above 2950 levels to maintain the positive sentiment. Any breach on the same may trigger a sell-off. A bigger move is expected only above 3,200. The recent rally from Rs 2700 to Rs 3000 levels has been a straight rise without any confirmed breakout. The the last six months, the PSU Bank index has been hovering around its 200-days moving average (DMA) as per daily chart. CLICK HERE TO VIEW CHART

(SBI): The stock has a strong relevance of 200-weekly moving average (WMA), as it has never been decisively broken in the last one year. The formation resembles a symmetrical triangle with immediate trendline resistance at Rs 310 level. The 200 WMA is placed at Rs 260, which acts as a strong support from a medium-term perspective. The weekly MACD has just risen above zero line, indicating a possible upside. A firm rally above Rs 310 will open doors for Rs 340 and Rs 360 levels. CLICK HERE TO VIEW CHART

(BANKBARODA): The bigger picture for the stock reveals negative sentiment on the chart. The falling channel pattern indicates selling pressure in the range of Rs 120 – Rs 125, its upper falling trend line. The 200-days moving average (DMA) coincides around the same range, placed at Rs 119.30 level. However, it has a support around Rs 112, a level where 100DMA and 50DMA in a process to make positive crossover. If it happens, the stock may cross its pressure range and head towards Rs 140 and Rs 150 level. CLICK HERE TO VIEW CHART

(PNB): The current rally towards Rs 86 level is due to the strong buying seen around Rs 68, which has become a support for a-near term trading, technical chart suggests. The golden crossover of 50DMA and 200DMA has further strengthened the upward move. A possible crossover of 100DMA with 200DMA may even lead to a stronger rally in the near future. The immediate support comes in the range of Rs 75 – Rs 78 and the trend recommends a move towards Rs 94 and Rs 105 level. CLICK HERE TO VIEW CHART

INDIAN BANK (INDIAB): The current levels of Rs 267 are closer to its resistance of Rs 276, its 200 DMA. It made a high of Rs 275.55 on Tuesday. The immediate support comes at Rs 252 followed by a firm support at Rs 245 level. The stock needs to scale above Rs 276 – Rs 280 to head towards next pressure range of Rs 294 – 298. CLICK HERE TO VIEW CHART

ORIENTAL BANK OF COMMERCE (ORIENTBANK): This is the most promising chart among the PSU banks, but the trading has not been backed by strong volumes. The overall trend highlights a breakout above Rs 95. The daily chart shows a positive crossover of all the moving averages 50 DMA, 100 DMA and 200 DMA, strongly holding the relevant support on correction. The stock may head toward Rs 115 and further to 132 levels if volumes start to gain momentum. CLICK HERE TO VIEW CHART

First Published: Mon, March 18 2019. 09:24 IST
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