Weekly Overview on Banking Sector

The foregone week was indeed one of the worst for bank counters with most of the stocks falling between 4 and 10 per cent with PSU banks being the most affected. With the Basel III implementation being announced by the RBI, it’s getting very tough for the PSU banks to shore up their CAR.

Among the PSU banks, State Bank is very crucially positioned with the stock just testing its 200 dma close, while it’s other technical aspect like RSI, Stochastics and Macd are very well supporting for a rebound. The stock can be purchased for weekly basis between 1950 and 1960 with a stop loss at 1925.

Punjab National Bank is another counter which is trading below its 200 dma average for more than two months and looks to take a good support at 785 levels. This counter poises a good buying opportunity at 785 with stop loss of 750-755.