Market Trading Guide: Bank of India among 2 PSU banking stocks that offer up to 8% upside potential

Nifty closed with gains on Wednesday, recording its third positive close amid buying trends in consumer, financial and metal stocks, even as the IT sector dragged the markets. The Nifty staged a consolidation break on the 15-minute chart, leading to a rally towards the end of the session. Rupak De, senior technical analyst at LKP Securities, said sentiment has improved significantly over the past three sessions as the index regained the support at 25,500 after a brief decline and subsequently breached the resistance at 25,800, which is a double confirmation of strength. “In the near term, the 25,500 is likely to act as a crucial support level. As long as this holds, buyers are likely to dominate. On the higher side, the index can extend gains to 26,000 and above,” he added.

Here are 2 stock recommendations for Thursday: Buy Bank of India for Rs 172.55 | Benefit: 8%

Stop loss: Rs 165

Target: Rs 187

The stock has registered a decisive breakout from its consolidation range, signaling the start of a new upward phase. It is currently trading above all major exponential moving averages – 20, 50, 100 and 200 EMAs – confirming a positive short to medium term trend structure. Momentum remains supportive, with the RSI at 64.01, positioned above the 14-period average of 57.29, indicating continued bullish momentum. Importantly, the RSI is not yet in overbought territory, suggesting there is room for further upside and the potential to reach higher price targets in the near term. (Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

Buy Bank of Maharashtra for Rs 68.99 | Benefit: 8%

Stop loss: Rs 66.25

Target: Rs 74.5

The stock has made a decisive breakout from its consolidation range, signaling the start of a new upward move. It is now trading above all major exponential moving averages – 20, 50, 100 and 200 EMAs – confirming a positive trend in the short to medium term. Momentum indicators further support the bullish outlook, with the RSI at 65.9 and trading above the 14-period average of 55.5. The RSI remains below the overbought zone, indicating healthy momentum and suggesting the stock has the potential to achieve higher upside targets in the near term.

(Kunal Kamble, Senior Technical Research Analyst, Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times)