Union Bank, PNB, Indian Overseas Bank: Trading strategies for these PSU bank stocks

Indian benchmark indices posted strong gains on Thursday, thanks to a fall in crude oil prices and ease in US bond yields. The BSE Sensex gained 405.53 points, or 0.62 per cent, to settle at 65,631.57. NSE's Nifty50 rose 109.65 points, or 0.56 per cent, to end the session at 19,545.75

Some active PSU bank counters such as Punjab National Bank (PNB), Indian Overseas Bank and Union Bank of India are likely to be in focus today. Here is what Avdhut Bagkar, Technical Analyst at StoxBox to say on these stocks ahead of Friday's trading session:

Punjab National Bank | Buy for target of Rs 95
Punjab National Bank shares have seen a correction of more than 7 per cent in the last two sessions but the medium-term outlook appears relatively bullish. At present, Rs 72-Rs 65 is the accumulation range, which has continued to bolster the sentiment since early September. A close over Rs 80 should salvage the optimistic run that may target Rs 95 level.

Union Bank of India | Buy for target of Rs 125
Post hitting a new 52-week high on Wednesday, Union Bank of India has seen profit-booking tendency. Nevertheless, the weekly breakout over Rs 95 is likely to take the stock towards Rs 125 in coming sessions. Any correction could be viewed as a buying opportunity since the longer-term trend has suggested an upward movement.
 
Indian Overseas Bank | Range-bound
The immediate structure of Indian Overseas Bank suggests the formation of an ascending triangle, which will break at a close above Rs 50. When that happens, the price action will resume its upward trajectory to Rs 58. The stock is enduring accumulation in the overbought category of RSI.


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