Breakout soon candidate: President of India’s portfolio multibagger PSU Bank stock on verge of breakout from a long consolidation, don’t miss!

The breakout level to watch out for the stock is Rs 52.7 and support level stands at Rs 47.80.

Indian benchmark indices were trading lower by nearly half a per cent on Wednesday with sharp profit booking seen in Nifty IT and Nifty Metal index. Nifty IT index was down by over 2 per cent, however, there is one sector which is seen resilient on Wednesday is Nifty PSU Bank as it is up by 0.68 per cent.

Majority of the stocks from the Nifty PSU Bank index were trading in green, however, one stock is showing a great set-up for swing trading and the stock name is Central Bank of India.

Central Bank of India is trading up by 1.5 per cent around the level of Rs 52 per share on NSE. The stock is on verge of logging a breakout from past three and half month’s consolidation which has taken a shape of a triangular pattern, signalling resumption of up-move and offers fresh entry opportunity. The stock has undergone shallow retracement as over past three and half months as it has retraced merely between 38-50 per cent of preceding sharp up move (Rs 20.25-56), highlighting robust price structure.

The daily MACD is pointing northward while sustaining above its nine periods average thus validates positive bias in the stock. The daily 14 periods RSI has generated a buy signal moving above its nine periods average thus validates positive bias.

Now, here comes an interesting fact, the stock has delivered multibagger returns of about 129 per cent from its 52-week low and President of India holds a whopping 93.03 per cent of shares in the company and interestingly, in the quarter ended September 2023, institutional investors have increased holdings from 2.98 per cent to 3 per cent.

The breakout level to watch out for the stock is Rs 52.7 and support level stands at Rs 47.80.

Disclaimer: The article is for informational purposes only and not investment advice.