Top three PSU bank stocks to buy today, 17 April, recommended by Ankush Bajaj

While bullish sentiment continues to build after the US tariff pause, markets are beginning to show signs of cautious optimism rather than unrestrained euphoria.

Top three PSU bank stocks to buy today, recommended by Ankush Bajaj

Buy: Indian Bank (current price: ₹568.00)

•  Why it’s recommended: The stock has given a strong breakout above ₹555, confirming bullish momentum. On the lower time frame, RSI is trending upwards and the price is trading above multiple key moving averages, indicating strength.
• Key metrics: Breakout level: ₹555; RSI: Trending bullish; Moving averages: Above key short and long-term EMAs
• Technical analysis: A clean breakout backed by rising RSI and support from multiple moving averages signals a continuation of the uptrend. The stock has the potential to reach its next resistance zone in the coming days.
• Risk factors: PSU banks may face volatility due to changes in interest rates, credit growth outlook, or regulatory decisions.
• Buy at: ₹568.00
• Target price: ₹587- ₹592 in 1-2 weeks
• Stop loss: ₹557

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Buy: Bank of India (current price: ₹115.50)

• Why it’s recommended: The stock has given a triangle pattern breakout from ₹111, suggesting a bullish reversal. On the hourly chart, ADX is trading above 35, indicating strong trend strength and continued upside momentum.
• Key metrics: Breakout level: ₹111 (triangle pattern); ADX: Above 35 (bullish); Trend: Positive
• Technical analysis: A breakout from a well-formed triangle pattern, supported by a strong ADX reading, points toward a potential upward rally. The stock is showing signs of trend continuation.
• Risk factors: PSU bank stocks can be influenced by credit policy changes, NPA concerns, and sector-specific reforms.
• Buy at: ₹115.50
• Target price: ₹125- ₹128 in 1-2 weeks
• Stop loss: ₹111

Buy: Bank of Baroda (current price: ₹240.80)

• Why it’s recommended: The stock has given a bullish pennant breakout from the ₹235 level, indicating the continuation of an uptrend. On the lower time frame, ADX is at 33 and RSI is trading above 67 — both suggesting strong bullish momentum.
• Key metrics: Breakout level: ₹235 (bullish pennant); ADX: 33 (trending); RSI: Above 67 (bullish)
• Technical analysis: The bullish pennant breakout, combined with a rising RSI and supportive ADX, confirms strong trend continuation. The stock is poised to test its next resistance levels soon.
• Risk factors: PSU banks may react to regulatory policy shifts, market sentiment, or broader economic indicators.
• Buy at: ₹240.80
• Target price: ₹250– ₹252 in 1–2 weeks
• Stop loss: ₹235

Market on 16 April: Mood shifts to cautious optimism after mild start

The BSE Sensex rose 0.40%, adding 309.40 points to settle at 77,044.29, while the NSE Nifty 50 gained 108.65 points or 0.47%, ending at 23,437.20. Nifty Bank outperformed, closing 1.41% higher at 53,117.75, boosted by positive developments in credit growth and softer global bond yields.

However, until the Nifty decisively closes above 23,800, some level of nervousness will continue to linger among market participants. The undertone remains positive, but traders are watching key resistance levels closely before declaring a full-fledged breakout.

Sectoral trends: Most Sectors gain, but upside moderates

Unlike the blanket rallies of the previous sessions, Wednesday’s gains were more moderate and selective, reflecting a slightly more tempered tone in the market. Most major sectors closed in the green, led by strong momentum in financials and energy.

The PSU Bank Index topped the gainers, climbing 2.37% on expectations of improved credit offtake and easing inflationary headwinds. Banking stocks followed with 1.41% gains, while the oil & gas index rose 1.33%, driven by steady crude prices and macro resilience in China.

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However, a few sectors closed in the red, indicating profit booking and sectoral rotation. The auto index slipped 0.43%, while pharma and healthcare closed 0.18% lower as traders turned cautious on defensive bets.

Stock-specific highlights: Bulls hold ground despite minor setbacks

Wednesday’s stock-specific action was more balanced than euphoric, with 48 of 50 Nifty stocks closing in the green, indicating strong underlying support. IndusInd Bank extended its rally, jumping 7.11% on heavy institutional flows. Axis Bank and ONGC gained 4.36% and 3.67%, respectively, driven by favorable sectoral trends and renewed investor confidence.

On the flip side, Maruti and Hindalco ended down 1.61% and 1.25%, respectively, on profit booking. Tata Motors also dipped 0.99%, as investors booked gains after a recent rally.

Indian stock market outlook

On the daily chart, Nifty has closed above the 200 EMA (23,360) — a key bullish signal. Additionally, RSI is trading above 55, indicating growing strength in momentum.

The next important resistance level to watch is 23,600. A daily close above this level could trigger a strong upward rally in the coming sessions.

Summary

• Close above 200 EMA = Bullish
• RSI > 55 = Positive momentum
• Key level to watch = 23,600 (spot)
• Close above this = Potential breakout rally

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As discussed yesterday, the market continues to show bullish sentiment supported by both open interest (OI) data and technical indicators. We witnessed a strong rally on Wednesday, and my spot-level target for Nifty remains 23,600.

Given that today is the weekly expiry, the current OI data indicates a maximum call OI at 23,500 and a maximum put OI at 23,300, suggesting a range-bound expiry between these levels.

However, if Nifty manages to break above 23,500 with volume support, we could see a sharp rally towards 23,600 or beyond.

Conclusion: Watch for a breakout above 23,500 for further upside. Until then, expect consolidation within 23,300–23,500.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.