Mumbai: PSU bank stocks such as SBI, Bank of Baroda, Canara Bank and PNB have been vying for market attention lately, having largely outperformed their private sector peers over the fortnight through May 11 on hopes of divestment surrounding state-owned banks.
Traders, however, wonder whether the rally has more legs. Market mavens believe 10-15 per cent more upside is possible this month itself if the Nifty holds 14,400-14,450 levels as Nifty PSU Bank index has risen after hitting an intermediate bottom near 1,947 on April 20 through 2,239.7 on May 11.
“If the 14,400 support breaks down, all bets are off," said Rajesh Palviya, technical head, Axis Securities, whose preferred picks are SBI and Bank of Baroda.