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"The sharp rise in PSU bank index comes after a prolonged sell off that had begun even before Nifty cracked. The index does have more room for upsides, with Indian bank, Bankboaroda, Unionbank, SBIN and Bankindia looking ripe for a bounce back. Also, 40% stock in Nifty IT has moved into the oversold region and among them Tech Mahindra and LTTS looks to be gearing up for a bounce back."

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