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Nifty PSU Bank index has surged close to 8 per cent in last three sessions, setting five months high surpassing previous significant barrier. Technically, the current momentum indicates a rally to reach a new all-time high.
On Tuesday, Punjab National Bank and Bank of India both soared over 3 per cent, while Bank of Baroda and Canara Bank gained 2 per cent, respectively. Nifty PSU Bank index was seen trading robustly, up 1.81 per cent.
Technically charts of selective banks reveal a resilient momentum that could see new highs in the coming sessions.
Here’s the technical outlook of Nifty PSU Bank stocks:-
Canara Bank (CANBK)
Likely target: Rs 370
Upside potential: 16%
The monthly chart indicates a breakout of “Inverse Head and Shoulder”, directing a rally towards Rs 370 and Rs 450 levels from a medium-term perspective. The current formation has a support at Rs 260 and unless this mark is breached, the positive trend is expected to see aggravated bias.
The underlying trend remains highly optimistic, with the Relative Strength Index (RSI) observing buying momentum in the overbought category. The 200-monhtly moving average (MMA) stays at Rs 250 level. CLICK HERE FOR THE CHART
Bank of Baroda (BANKBARODA)
Likely target: Rs 218
Upside potential: 10%
Shares of Bank of Baroda reached a new 52-week high on Tuesday, triggering further upside in the current trend. Immediate support falls at Rs 190, followed by Rs 184, as per the daily chart. The stock is headed to set a new historic peak, aiming Rs 218-mark.
The stock has closed over UBB (Upper Bollinger Band) second time in the recent sessions, initiating a bullish bias for the next sessions. While the RSI has entered the overbought territory, the price action shall not prevent selling pressure to take over, which needs to be watched in coming days. CLICK HERE FOR THE CHART
Punjab National Bank (PNB)
Likely target: Rs 61
Upside potential: 11%
Punjab National Bank shares have surpassed the previous hurdle mark of Rs 53.30, with robust volumes suggesting positive bias for coming sessions. While the price action denotes divergence on RSI, the momentum reveals rigid trend demonstrating ability to absorb all the selling pressure emerging in the process.
Only a break of Rs 48, its 200-day moving average (DMA) could alter the rising trend, as per the daily chart. The trend suggests a rally to Rs 61. CLICK HERE FOR THE CHART
State Bank of India (SBIN)
Likely target: Rs 700
Upside potential: 17%
State Bank of India requires to overcome the barrier of Rs 594, its previous reversal mark; to embark on the new journey that could potentially set a new precedent by reaching a fresh all-time high.
This momentum could even see stock travelling in the direction of Rs 700-level. Once the Moving Average Convergence Divergence (MACD) crosses over the zero line, the trend shall witness aggressive upward rallies. CLICK HERE FOR THE CHART
Central Bank of India (CENTRALBK)
Likely target: Rs 36
Upside potential: 15%
Shares of Central Bank of India have strong support of the 200-DMA, currently placed at Rs 26.30-level. Recent sessions have observed increased volumes on the upbeat close. This indicates accumulation, which could accelerate once the stock leaps over the immediate hurdle of Rs 31.20.
Following that, the trend shall endure a rally in the direction of Rs 36 to Rs 40 levels. The weekly chart confirms a support of Rs 25.30, its 50-WMA; which the stock is honouring since March of this year. CLICK HERE FOR THE CHART
