Nifty PSU Bank tests 200-DMA; tech analyst flags key levels in 7 stocks

Muthuselvaraj M of Mirae Asset Sharekhan expects the short-term bias to remain sideways but sees positive prospects for Bank of India, UCO Bank and IOB among others from a medium-term perspective.

Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised. The Nifty PSU Bank index has been hovering around its long-term 200-day moving average (200-DMA) on the technical charts for the last month. The index tested (hit) the 200-DMA in 16 out of the last 24 trading sessions, suggesting a stiff tussle between the bulls and bears at the 200-DMA, which stands at 8,601. In general, the 200-DMA is a widely used technical indicator to determine the long-term trends of the underlying index or stock. Indices or stocks trading above the 200-DMA are considered to be in an uptrend, and vice versa. Given this background, here's a detailed technical analysis on the Nifty PSU Bank and select stocks from the index by Muthuselvaraj M, Technical Research Analyst at Mirae Asset Sharekhan. Muthuselvaraj believes the PSU Bank index has been consolidating since hitting a peak of 9,918 in February 2026. Among the key levels to watch, he flags key support at 8,200 and resistance at 8,800. "A breakout above the recent swing high is needed for a positive shift; otherwise, we expect consolidation between 8,200 and 8,800, with medium-term support at 8,000. Overall, the structure remains sideways to negative for the short term," says the analyst. Canara Bank Current Market Price: ₹127.76 

 

 

 Canara Bank stock is trading below its 200-DMA of ₹138.80, signalling that the corrective phase may continue toward the ₹126 level, with key medium-term support at ₹116, says Muthuselvaraj. Adding that, on the upside, a break above the ₹130–140 hurdle zone is required to shift the short-to-medium-term trend to positive, potentially targeting ₹148–160 levels. Bank of Baroda Current Market Price: ₹242.80 

 

 Bank of Baroda has been forming a "lower top, lower bottom" pattern since peaking at ₹325, notes the analyst. Muthuselvaraj, however, reckons that the stock appears resilient around the ₹235 level, with immediate support at ₹220. He expects the stock to consolidate between ₹235 and ₹250 in the short-term, adding that the medium-term structure looks mildly bullish. Central Bank of India Current Market Price: ₹30.83 

 

 The short-term trend remains sideways, while the medium-term appears resilient as key momentum of Central Bank of India stock are in the oversold zone, flags Muthuselvaraj. The analyst expects the stock to trend upward once it crosses ₹36, which represents a 61.8 per cent retracement of its base formation. Indian Overseas Bank Current Market Price: ₹32.94 

 

  In case of Indian Overseas Bank stock too, the short-term trend remains sideways, while the medium-term outlook appears resilient as momentum indicators are showing strength, says the analyst. He adds that the stock could trend upward once it crosses ₹35, which represents a 38 per cent retracement of its base formation. UCO Bank Current Market Price: ₹24.86 

 

 UCO Bank stock needs to cross ₹26 for the trend to turn favourable. Key support for the stock stands at ₹21. Overall, the chart suggests buying opportunities for the short-to-medium term, says Muthuselvaraj. Punjab & Sind Bank Current Market Price: ₹23.15 

 

 The analyst notes that Punjab & Sind Bank is consolidating at its base after a "lower top, lower bottom" pattern. The analyst sees immediate support for the stock at ₹20, and expects the trend to turn positive above ₹24. Bank of India Current Market Price: ₹145.73 

 

 Bank of India could see a pullback as it seems to have formed multiple support levels around ₹134, says the analyst. Adding that momentum indicators also suggest buying interest for the short-to-medium term. Muthuselvaraj believe an upward move could follow once the stock crosses above ₹148.