Market Trading Guide: Bank of India Among 2 PSU Bank Stocks Offering up to 8% Upside

Why It Matters

The upside potential in two PSU banks offers investors a low‑cost, technically validated entry amid a strengthening market, reinforcing the financial sector’s role in the broader Indian equity rally.

Key Takeaways

• Bank of India breaking above all major EMAs
• Target price Rs 187 implies 8% upside
• RSI at 64 indicates bullish momentum, not overbought
• Bank of Maharashtra also shows 8% upside potential
• Nifty support at 25,500 could drive further gains

Pulse Analysis

The Indian equity market posted a third consecutive rally on Wednesday, with the Nifty 50 closing above the 25,500 support level and breaching the 25,800 resistance. This technical bounce was led by consumer, financial and metal stocks, while information technology lagged. Within the financial segment, two public‑sector banks—Bank of India and Bank of Maharashtra—emerged as standout candidates, each charting a clean breakout from a prolonged consolidation zone. Analysts at Bonanza Portfolio flagged both securities as buy candidates, projecting roughly 8 % upside based on current price action.

Both banks are now trading above the 20‑, 50‑, 100‑ and 200‑day exponential moving averages, a classic sign of a sustained uptrend. Momentum metrics reinforce the bullish case: the relative strength index sits at 64 for Bank of India and 66 for Bank of Maharashtra, comfortably above their 14‑day averages yet still shy of the overbought threshold of 70. The recommended stop‑loss levels—Rs 165 for Bank of India and Rs 66.25 for Bank of Maharashtra—provide a disciplined risk buffer while preserving the upside potential toward Rs 187 and Rs 74.5 respectively.

From a portfolio perspective, the upside in these PSU banks aligns with a broader shift toward defensive equities amid global rate uncertainty. The Nifty’s ability to hold the 25,500 floor suggests that institutional buying remains resilient, offering a supportive backdrop for financial stocks. Investors seeking exposure to the Indian banking sector can leverage the technical signals to time entry points, but should monitor macro variables such as RBI policy and credit growth, which could amplify or temper the projected price moves. Overall, the dual‑bank setup adds a compelling, low‑cost entry for risk‑aware traders.

Market Trading Guide: Bank of India among 2 PSU bank stocks offering up to 8% upside

By Shivendra Kumar, ETMarkets.com · Last Updated: Feb 18 2026, 08:31 PM IST

Nifty closed with gains on Wednesday, recording its third positive close amid buying trends in consumer, financial and metal stocks, though the IT sector dragged markets. The Nifty gave a consolidation breakout on the 15‑minute chart, leading to a rally towards the end of the session.

Rupak De, Senior Technical Analyst at LKP Securities, said that sentiment has improved significantly over the last three sessions as the index reclaimed the 25,500 support after a brief decline and then crossed the 25,800 resistance, providing double confirmation of strength.

“In the short term, 25,500 is likely to act as a crucial support level. As long as it holds, buyers are likely to dominate. On the higher end, the index may extend gains towards 26,000 and above.”

---

Stock Recommendations for Thursday

Buy Bank of India – Rs 172.55 | Upside: 8 %

• Stop Loss: Rs 165

• Target: Rs 187

The stock has broken out decisively from its consolidation range, indicating the start of a fresh upward phase. It is trading above all major exponential moving averages (20, 50, 100, 200 EMAs), confirming a positive short‑ to mid‑term trend. Momentum remains supportive, with the RSI at 64.01 (above its 14‑period average of 57.29), signalling continued bullish momentum. The RSI is still below the overbought zone, suggesting room for further upside.

(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

Buy Bank of Maharashtra – Rs 68.99 | Upside: 8 %

• Stop Loss: Rs 66.25

• Target: Rs 74.5

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

(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

---

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