PSU Bank Shares/Stocks Recommendations for short term
PSU Bank Shares/Stocks Recommendations: The shares of the public sector undertaking (PSU) Bank continued their upward journey since the last month The PSU Bank index has rallied more than 40% in the last month and touched a 52-week high at 2660.60. In the month of February, the PSU Bank index has gained around 37% and outperformed the Nifty50 index which gained 10% approximately.
In the last two weeks, we have seen the beaten-down PSU bank shares decided to wake up and joined the party as if they have finally received the invitation to join the ongoing market rally. The positive sentiments in this sector are due to the news of the privatization of four banks and improved quarterly earnings.
The percentage-wise rally in the PSU Bank shares after the budget is mentioned below:
| PSU Bank list | As of 1st Feb 2021 | As of 19 Feb 2021 | Percentage |
| IOB | 11.00 | 17.60 | 60.00 |
| Bank of India | 53.45 | 84.30 | 57.72 |
| Central Bank | 14.30 | 21.60 | 51.05 |
| Indian Bank | 94.70 | 142.20 | 50.16 |
| Bank of Maharashtra | 14.85 | 23.35 | 57.24 |
| SBI | 310.70 | 399.55 | 28.60 |
| Union Bank | 32.30 | 40.50 | 25.39 |
| Bank of Baroda | 73.90 | 91.20 | 23.41 |
| PNB | 35.75 | 42.05 | 17.62 |
| Canara Bank | 142.25 | 160.00 | 12.48 |
| UCO Bank | 13.00 | 14.40 | 10.77 |
| Punjab & Sind Bank | 13.65 | 19.55 | 43.22 |
We have selected 3 PSU Bank shares that can give you more than 20% gain in the short term
The first PSU Bank share is Bank of India (BOI) – CMP Rs 84.3| Dt-19 Feb 2021| Target Rs 107
Bank of India is the nationalized bank founded in the year 1906. The Bank of India is in the news due to its privatization along with three other banks. The share price of the Bank of India closed at Rs 84.3 on 19 February 2021.
The Bank of India share price has touched a 52-week high at Rs 101.40 and a low of Rs 30.4. On a weekly basis, the BOI share price has gained 43.2 percent. The share price of the Bank of India has given a breakout at Rs 76. We feel more steam left in this counter and advise investors to accumulate the stock on dips.
Technically the Bank of India share price is looking strong, RSI is 74.1 is showing overbought, so investors can also accumulate the stock after some correction. According to MACD analysis, the MACD line is at 7.84 and the Signal line is at 3.87 indicates the Bank of India share price is technically strong. The exponential moving average indicates the share is in a strong uptrend and has a major support level at Rs 65-57-50
Our stock recommendations: Investors can accumulate Bank of India share at a current market price or on dips with a stop loss of Rs 74 for the target of Rs 96-101-107
The second PSU Bank share is Bank of Baroda (BOB) – CMP Rs 91.2 | Dt-19 Feb 2021| Target Rs 132
The Bank of Baroda is an Indian multinational, public sector banking and financial services company. It is the third-largest public sector bank in India with 131 million customers. The Bank of Baroda share prices has rallied more than 23% in February after the budget and it closed at Rs 91.2 on 19 February.
The share price of Bank of Baroda has touched a 52-week high at Rs 99.85 and low at Rs 36. On a weekly basis, the Bank of Baroda share price has gained 16.4%. The Bank of Baroda has given a breakout above Rs 85 levels and we are bullish above the risk management levels of Rs 85
Technically, the share price of Bank of Baroda is strong, its RSI is at 68.1 is not in an overbought position. According to MACD analysis, its MACD line is at 4.86 and the Signal line is at 3.82 indicates the Bank of Baroda share price is technically strong. The exponential moving average indicates the stocks is in an uptrend and has a major support level at Rs 80-72-62
Our stock recommendations: We recommend accumulating the Bank of Baroda at the current market price or on dips for the target of Rs 102-109-132 with a stop loss of Rs 80.
The third PSU Bank share is Punjab National Bank (PNB) – CMP Rs 42.05 | Dt-19 Feb 2021| Target Rs 71
The Punjab National Bank (PNB) is an Indian public sector bank headquartered in New Delhi and was founded in 1894. The PNB is the second largest public sector bank in India in terms of business and its network. The share price of PNB closed at Rs 42.05 on 19th February. It has rallied more than 17% in the month of February after the Budget.
The share price of PNB has touched a 52-week high at Rs 53.7 and a low at Rs 26.3. On a weekly basis, the PNB share price has gained 8.38%. The PNB has strong support at 41 levels.
Technically, the PNB share price is looking strong, RSI at 63.5 indicates the stock is not overbought. According to the MACD analysis, the MACD line is at 1.71 and the Signal line is at 1.27 also indicates the PNB is technically strong. The 50-day exponential moving average (EMA) has just got above its 200-day EMA is a positive signal for the stock. According to the EMA analysis, the share price of PNB is in a strong uptrend and has a major support level at Rs 38.90-36.70- 36.67
Our stock recommendations– Investors can accumulate the stock PNB at the current market price for the target of Rs 55-62-71 with a stop loss of Rs 38.90.
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Happy Investing !!
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