Central Bank, UCO Bank, Indian Overseas Bank, IDBI Bank, Canara Bank and PNB Shares Among Major Losers in PSU Banking Sector
Public sector banks were among major losers on Friday with Central Bank, UCO Bank, Indian Overseas Bank and IDBI Bank down by over 4 percent. SBI, Canara Bank and PNB shares were also trading lower as selling pressure was witnessed across many sectors in today's trade. Traders should wait for markets to settle before making buying decisions. Markets were looking bearish after yesterday's close and market participants were expecting small correction today. TopNews has briefly reviewed support levels and Fibonacci Insights for some of the Public Sector banks.
Central Bank
Steady Recovery: Central Bank has witnessed a stable recovery from its 52-week low of Rs 46.20, indicating strength in its fundamentals.
Fibonacci Outlook: With key resistance levels at Rs 68.55 and Rs 71.75, investors should watch for breakouts to capitalize on potential gains.
Earnings Prospects: As a PSU bank, improved credit growth and asset quality enhancement are likely to drive future profitability.
UCO Bank
Consistent Growth: UCO Bank's consistent upward movement from Rs 36.75 reflects market confidence in its restructuring efforts.
Fibonacci Levels: Rs 61.70 serves as a significant resistance, where investor interest is expected to increase.
Dividend Yield: Though modest, a yield of 0.60% highlights a focus on returning value to shareholders.
Indian Overseas Bank
Turnaround Story: With a market cap of over Rs 1 trillion, IOB is capitalizing on its turnaround efforts post-NPA resolution.
Fibonacci Targets: Critical levels at Rs 67.25 and Rs 72.32 could dictate the stock's near-term movement.
Sector Leader: Benefiting from government policies, IOB is positioned to maintain its stronghold among PSU banks.
IDBI Bank
Privatization Prospects: Privatization news continues to spark interest, with the stock gaining momentum since its 52-week low of Rs 63.40.
Fibonacci Resistance: Key targets at Rs 94.35 and Rs 99.72 will test investor confidence.
Valuation Advantage: With a P/E of 12.74, IDBI Bank remains attractively valued in comparison to peers.
Canara Bank
Strong Fundamentals: Canara Bank’s P/E of 5.92 and dividend yield of 3.08% make it a compelling pick for value-focused investors.
Fibonacci Watch: Breakout levels at Rs 110.80 and Rs 116.00 will guide its next rally.
Growth Catalyst: Its focus on digital banking and cost efficiency bodes well for long-term profitability.
PNB
Sector Dynamics: PNB's position as one of India’s largest banks ensures consistent attention from institutional investors.
Fibonacci Insights: Resistance at Rs 126.83 will be a critical level to watch for further upside.
Dividend Policy: A yield of 1.43% underscores management’s commitment to shareholder returns while maintaining growth focus.
| Stock | Open (Rs) | High (Rs) | Low (Rs) | 52-Wk High (Rs) | 52-Wk Low (Rs) | Fibonacci Levels (Rs) |
|---|---|---|---|---|---|---|
| Central Bank | 59.20 | 59.20 | 56.45 | 76.90 | 46.20 |
23.6%: Rs 61.39 38.2%: Rs 65.35 50%: Rs 68.55 61.8%: Rs 71.75 |
| UCO Bank | 48.48 | 48.60 | 45.84 | 70.65 | 36.75 |
23.6%: Rs 53.21 38.2%: Rs 57.67 50%: Rs 61.70 61.8%: Rs 65.72 |
| Indian Overseas Bank | 57.35 | 57.40 | 54.54 | 83.75 | 40.75 |
23.6%: Rs 55.47 38.2%: Rs 62.18 50%: Rs 67.25 61.8%: Rs 72.32 |
| IDBI Bank | 82.88 | 82.98 | 80.05 | 107.90 | 63.40 |
23.6%: Rs 83.18 38.2%: Rs 88.97 50%: Rs 94.35 61.8%: Rs 99.72 |
| Canara Bank | 107.00 | 107.49 | 104.20 | 128.90 | 82.69 |
23.6%: Rs 97.67 38.2%: Rs 105.59 50%: Rs 110.80 61.8%: Rs 116.00 |
| PNB | 107.00 | 107.74 | 104.35 | 142.90 | 84.75 |
23.6%: Rs 114.83 38.2%: Rs 121.53 50%: Rs 126.83 61.8%: Rs 132.12 |
All investments should be made after carefully reviewing risk/reward for any trade.
