Don't miss action in this PSU Bank stock showing early signs of trend reversal

Don't miss action in this PSU Bank stock showing early signs of trend reversal

by 5paisa Research Team Last Updated: Feb 28, 2023 - 10:02 am 927 Views
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Monday turned out to be marvelous day of trade for the Banknifty. The Banknifty ended with a gain of 1%, meanwhile, the frontline benchmark indices ended in red. Considering a reversal pattern formed in the Banknifty, there are certain stocks which are exibhiting reversal in trend and thus providing a resident opportunity. One such stock is the largest PSU bank stock, which is showing early signs of reversal after a sharp downfall in the recent past.

SBI is the largest PSU bank, which managed to closed in positive terrain with a gain of 1.28%. SBI has a weightage of nearly 10% in the Banknifty. On the daily chart, it formes a strong bullish bar and as a result, it has formed three higher high candles. It closed near the 20DMA. The Bollinger bands narrowed and indicated that a close above 20DMA would lead to a good upside in the stock. The MACD has given a fresh buy signal, which bodes well for the stock. The 14 periods daily RSI is about to come out of the squeeze area. The Elder impulse system has also formed three successive neutral bars, which indicates waning of bears power. The KST and the TSI have given fresh buy signals. The stock is currently trading marginally 1.72% below the 20DMA. In short, the stock is giving early signs of reversal. A move above Rs.528 is positive for the stock and it can test the level of Rs.537, on the upside in the short term. Maintain a stop loss at Rs.519 for long positions. Above the level of Rs.537, continue with a trialling stop loss for a higher target of Rs 557.

The stock is down by nearly 5% in the last one month and on a year to basis it is down by nearly 14%.

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