SBI, BoB, PSB: Track these levels while riding the rally in PSU Banks

The Nifty PSU Bank index was the top performing sector post Interim Budget on Thursday; the index was up almost 12 per cent in the last four days.

Shares of PSU bank were seen outperforming the markets with gains up to 6 per cent post announcement of the Interim Budget 2024. Finance Minister Nirmala Sitharaman proposed a fiscal deficit target of 5.1 per cent and net borrowing of Rs 11.75 lakh crore for FY25. Post which, a notable dip was witnessed in the 10-year government bond yield to 7.048 per cent.

The focus is likely to remain on banks, with the upcoming Reserve Bank of India's Monetary Policy Committee meeting from February 06 - 08 next week.

Meanwhile, given the sharp rally in select PSU shares, here are the key levels as per charts for market percipients to keep a track while riding the current rally.

Nifty PSU Bank

Current Level: 6,418

Key supports: 6,300; 6,280

The Nifty PSU Bank index has rallied almost 12 per cent in the last four trading sessions. Presently, the index is quoting above the higher-end of the Bollinger Bands on the daily scale, thus suggesting the bullish bias to continue as long as the index holds above 6,300 levels. The pivot point on the weekly scale stands at 6,280.

As long as this support zone is not violated, the PSU Bank index could attempt to scale higher heights in the near-term. However, break and sustained trade below should be considered as early signs of a potential correction, since the index is trading are fairly overbought zone on multiple time-frames. CLICK HERE FOR THE CHART

SBI

Current Price: Rs 646

Support: Rs 632

Resistance: Rs 650; Rs 660

Key momentum oscillators have recently turned positive for SBI on the daily scale, thus advocating a likely positive trend in the short-term. Momentum also seems in favour of the stock on the longer-term charts.

Daily chart indicates that the stock has near resistance at Rs 650 and Rs 660, in the form of higher-end of the Bollinger Bands and the Super Trend Line. As and when, the stock breaks and sustains above this resistance zone, the stock is likely to see fresh momentum with a potential 5-10 fresh upside. In case of a correction, the 20-DMA (Daily Moving Average) at Rs 632 can be expected to act as support. CLICK HERE FOR THE CHART

Bank of Baroda (BoB)

Current Price: Rs 252

Support: Rs 246

Resistance: Rs 255

The short-term bias for Bank of BoB is likely to remain positive as long as the stock trades above Rs 146. Having said, the stock looks fairly stretched on the monthly chart, with key momentum oscillators showing some signs of tiredness. 

In order to strengthen, the stock needs to break and sustain above Rs 155 on a consistent basis. CLICK HERE FOR THE CHART

Bank of India

Current Price: Rs 144

Support: Rs 130

Upside Potential: 19%

Shares of Bank of India seems to be on course to test its 200-MMA (Monthly Moving Average), which presently stands at Rs 172 - thus indicating a likely upside of 19 per cent from present levels. The stock last traded above its 200-MMA in December 2017. In the interim, the stock is likely to find considerable support around Rs 130. CLICK HERE FOR THE CHART

PNB

Current Price: Rs 118

Support: Rs 107

PNB has zoomed nearly 22 per cent in the last six straight trading sessions. In the process, the stock is seen trading above its 200-MMA, which now stands at Rs 107, and could provide cushion for the stock in case of a dip. CLICK HERE FOR THE CHART

PSB

Current Price: Rs 53.25

Support: Rs 51.60; Rs 50.30

Upside Potential: 18% 

PSB was among the top gainers on Thursday, up almost 5 per cent at Rs 53.25. The stocks seem to be favourably placed on the multiple time-frames, with strong support expected around Rs 51.60 and Rs 50.30 levels. On the upside, the stock could rally towards Rs 63. CLICK HERE FOR THE CHART