BoB, Canara Bank to IDBI Bank: PSU bank stocks rebound from today's low. Details here

The Indian stock market snapped a six-day rally, opened on a lower note on Tuesday, November 18, on global cues. Among sectors, Nifty PSU Bank stood out as the only gainer, continuing its winning streak for the third consecutive session.

PSU banking stocks rebounded from today's low to gain up to 2% despite weak market sentiments.

Bank of Maharashtra was among the biggest gainers, surging nearly 1.65% to ₹60.90 apiece on BSE. IDBI Bank and Central Bank stood at the second and third spot, gained over 1.37% and 1.36% respectively, during an intraday session on November 18.

Meanwhile, other PSU banking stocks also turned green despite weak market sentiments. The Bank of Baroda share price was up 0.69% on Tuesday. At 9:35 am, the BoB stock hit an intraday high of ₹289.65 apiece.

Punjab and Sindh Bank and UCO Bank were up 0.52% and 0.89% on BSE.

On the other hand, Union Bank slipped 0.2% and Indian Overseas Bank declined 0.1%, making them the top laggards.

According to Anshul Jain, Head of Research at Lakshmishree, the PSU Bank Index has completed its Cup and Handle breakout above 7,245, hitting the initial target of 8,500 and still displaying remarkable strength with strong upward momentum.

“Given the current price action and volume behavior, the ongoing bullish momentum is likely to continue for the next 3 to 4 weeks, with bulls now setting their sights on an extended target of 9,000. The broader structure remains supportive, and individual PSU bank components are also participating in the move. Stocks like Central Bank and Union Bank have started catching up, adding further confirmation that the sector-wide momentum remains firmly intact and poised for higher levels,” Jain said.

PSU Bank outlook in the near term

According to ICICI Direct, the PSU Bank Index continues to outperform, maintaining a higher-high, higher-low formation for the tenth-straight week on the back of strong Q2 earnings.

“In near term, index is witnessing series of healthy consolidation after sharp up move. However, any dip from hereon should not be construed as negative instead capitalized it as buying opportunity in quality stock as strong support is placed near 7,800, aligning with the 38.2% retracement of the latest rally (6,730–8,391),” the brokerage firm said.

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