PSU Bank Stocks Under Pressure: 8 of 12 Nifty Stocks Below 200-DMA

Eight of the 12 stocks that make up the Nifty PSU Bank index are currently below their 200-day moving averages (200-DMA). State Bank of India (SBI), Bank of Baroda and Canara Bank are among the lenders trading under this level, based on technical data cited in a Business Standard report published on September 8. 

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The 200-DMA is used to track a stock’s longer-term price trend. When a stock stays below the average, it typically signals that the broader trend has weakened. 

PSU bank stocks have also declined from their recent 52-week highs. Data from ACE Equity cited in the report shows that the stocks have fallen between 10 per cent and 30 per cent from those levels. 

Ten PSU banks had hit their 52-week highs between mid-January and late June this year. Four of them, Punjab & Sind Bank, UCO Bank, Bank of Baroda and Central Bank of India, have since lost more than 25 per cent from those peaks. 

Four PSU banks at around 16-year lows 

The decline has been steeper for some of the smaller public sector lenders. According to ACE Equity data, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank and UCO Bank are trading around 16-year lows. 

These four stocks are down between 84 per cent and 86 per cent from their respective lifetime highs, the report said. 

The recent weakness in PSU bank stocks has come amid market discussions around possible consolidation in the sector. A rise in bond yields has also affected sentiment towards these stocks. 

During the April-June 2026 quarter, or Q1 FY27, several public sector banks faced pressure on treasury gains, which affected their overall profits. The report also noted concerns around rising oil prices and a widening rainfall deficit, with bond yields remaining firm. 

PSU bank stocks in consolidation phase 

On the technical front, PSU bank stocks have been in a consolidation phase since February 2026. Most of the stocks in the space are trading below their 200-DMAs, pointing to a weak trend on the charts. 

The technical assessment in the report also points to a sideways-to-negative near-term trend in momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence-Divergence (MACD). 

The weakness comes after a period in which several PSU banks had recorded fresh 52-week highs earlier in the year. With eight of the 12 Nifty PSU Bank constituents now below their 200-DMAs and four banks trading around 16-year lows, the sector's recent movement remains under scrutiny.