This PSU Bank is rocking D-street; what does it offer the traders?

The stock of Indian Bank has jumped nearly 20% in the last 5 trading sessions!

Broader indices are in a strong run ahead of Diwali, and the frontrunners of this rally remain the PSU Banks. Many PSU Banks have seen a strong surge in the past few days, indicating strong bullish momentum. Meanwhile, the stock of Indian Bank (NSE Code: INDIANB) has soared nearly 20% in the past 5 trading days, backed by massive volumes. During Friday's initial hours, the stock jumped over 5% and hit a fresh 52-week high level of 235.90 on NSE. After nearly 2 months of consolidation, it has seen a huge boost from the institutions. The price pattern is promising, and the stock has a strong chance of scaling further higher levels.

From a technical perspective, the stock is extremely bullish. The 14-period daily RSI (72.23) is in the super bullish zone and shows strong strength in the stock. The MACD had indicated a bullish crossover earlier and currently shows tong upside potential. The OBV is at its peak and indicates strong buying activity. The ADX is in a strong uptrend and +DMI is well above -DMI, indicating strong trend strength. The stock is currently over 15% above its 20-DMA and over 40% above its 200-DMA. In a nutshell, the stock is technically very strong, and one can expect it to continue its bullish stance.

Strong credit growth and quality, driven by massive loan books, have prompted a fresh interest towards the PSU Banking stocks. The PSU Banks look forward towards a new era of strong banking activities and robust growth after dismal past years.

On a YTD basis, Indian Bank has surged over 65% and has outperformed most of its peers. Considered one of the best in its segment, the stock offers strong trading opportunities for momentum investors and traders. One should keep an eye on this stock to track its further progress!