RBI has hinted that it will start cutting the interest rate from next year. Banks will be the greatest beneficiary of this interest rate cut. All private sector banks are trading at their life time highs but PSU banks are still too far from their life highs. PSU banks have under-performed in this bull run due to concerns of raising NPAs but are expected to catch up as NPA numbers are becoming better. Lets check out what the charts are saying about the PSU banks.
1. PSU Bank Index
On the weekly charts the PSU bank index is trading above the inverted head and shoulder neckline. Which suggests that if it can sustain above 3900 can rally up to 5500.
Lets now checkout what the charts of top stocks of PSU banks index saying.
1. Punjab National Bank (PNB)
PNB also on weekly chart is trading above inverted head and shoulder neckline. The pattern has target of 300
2. Canara Bank
On the daily chart the stock has came out of the downward sloping channel and is also trading above the inverted head and shoulder neckline. The pattern is suggesting 100 points up side in the stock.
3. Orient Bank
Again an inverted head and shoulder here suggesting targets up to 390
4. Bank of India
The stock is forming inverted head and shoulder on the daily chart with neckline at 302. If it sustains above this level can go up 380
Disclaimer : The content is for information only not any recommendation of investment. Consult your financial adviser before investing.