Technical trends: Is it a good time to buy public sector banks?

Since the announcement on August 30 made post market hours, stocks of Punjab National Bank, Union Bank of India, Oriental Bank of Commerce, and others have seen a sharp slide at the bourses.

Public sector banks (PSBs) have been in focus over the past few trading sessions, after the government unveiled a mega plan to merge 10 public sector banks into four. The consolidation exercise will bring down the number of nationalised public sector banks to 12, from 27 in 2017.

Punjab National Bank (PNB) will take into Oriental Bank of Commerce and United Bank of India to form the nation's second-largest lender; Syndicate Bank will merge into Canara Bank; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will absorb Allahabad Bank.

Since the announcement on