Nifty PSU Bank poised for breakout, may beat Nifty Bank: Kunal Shah

economictimes.indiatimes.com:

Nifty PSU Bank is poised for a potential breakout, suggesting a shift in market sentiment, according to Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.«It's anticipated that the PSU Bank Index might outperform the broader Bank Nifty Index in the forthcoming trading sessions,» he states. In this interview, he also explains his preference for Maharashtra Bank.

Edited excerpts:Bank stocks have been dragging down the Nifty. How are the charts looking like for the week ahead? After the RBI policy announcement, the banking sector has witnessed significant selling pressure, leading to a decline in the Bank Nifty index.

Fresh short positions have been observed in the F&O data, indicating a bearish sentiment among traders. This is reflective of the cautious market sentiment at higher price levels.The prevailing stance seems to be selling on rallies, as the index remains in a sell-on-rise mode.

The next significant support level is identified at 43700, which could potentially attract buying interest and act as a level of stabilization.Nifty PSU Bank surprised with a sharp rally in the week. How are some of its constituents like Indian Bank, IOB and Bank of Maharashtra looking like? Which ones look well placed? The PSU Bank Index is poised for a potential breakout, indicating a shift in market sentiment.

It's anticipated that the PSU Bank Index might outperform the broader Bank Nifty Index in the upcoming trading sessions. A particularly appealing prospect in this context is Maharashtra Bank, which has exhibited a fresh breakout on the charts, accompanied by a notable increase in trading volumes.The stock has a support level at Rs 34, which could serve as a protective barrier for any potential downward