PSU Bank Index Tests Key Support; Analyst Flags 7 Stock Levels

The Nifty PSU Bank index has repeatedly tested its 200-day moving average over the past month, indicating a struggle between buyers and sellers at the 8,601 level. Analyst Muthuselvaraj M of Mirae Asset Sharekhan expects short-term consolidation between 8,200 and 8,800. The index has been consolidating since its February 2026 peak of 9,918, with key support at 8,200 and resistance at 8,800. A breakout above the recent swing high is needed for a positive shift, otherwise the structure remains sideways to negative for the short term. Among individual stocks, the analyst sees positive medium-term prospects for Bank of India, UCO Bank, and Indian Overseas Bank, while flagging Canara Bank as trading below its 200-DMA with potential downside toward ₹126.