Market Analysis: Riding the Bullish Wave in PSU Banks

The sheer momentum behind the Public Sector Banks (PSBs) sector is simply phenomenal. The market theme, which was correctly identified as far back as Late August and Mid-September, has translated into an exceptional, high-powered rally. The specific leaders, State Bank of India (SBI) and Indian Bank, have been incredible performers, having already blown past targets and establishing themselves as the absolute frontrunners.
This isn’t just a typical move; the rally is sustained by powerful tailwinds and a compelling structural shift within the sector. The technical charts are simply confirming that the underlying strength is preparing the ground for the next big leg higher, suggesting this explosive story is far from reaching its climax.
The current technical pictures for both stocks are exceptionally compelling:
State Bank of India (SBI): The target of 1000 for SBI is not just a projection—it feels like an inevitable point of magnetic attraction pulling the price higher. Trading in this wide-open, uncharted territory, the stock’s significant volume and sustained breakout power strongly suggest that the psychological 1000 mark will be the next major staging post before the dominant trend continues its powerful upward expansion.
Indian Bank (INDBANK): This one is demonstrating a remarkably aggressive technical setup that signals quick, powerful returns. The expectation for a decisive push toward 900 in the coming weeks is entirely plausible given the stock’s current trajectory. It’s displaying the classic breakout behavior of a strong bull market leader, using its current levels as a high-potential launchpad for a major surge.
In short, the technical landscape for these two banks remains overwhelmingly positive. The best-in-class price performance from these PSB leaders looks set to continue rewarding those who understood the sector’s turning point early.

The move in RELIANCE is the single most crucial factor for driving the Nifty to a new all-time high above 26277, making the upcoming results and price action paramount. The key requirement for a significant market-driving breakout rests solely on RIL clearing the critical technical zone between ₹1410 and ₹1420 on a cash basis. A decisive move past this resistance would trigger a powerful bullish breakout, immediately paving the way for potential upside targets of ₹1470 and then ₹1540 in the following sessions. With the company’s Q2 results due post-market tomorrow, the entire market’s focus will be on the outcome and the stock’s subsequent reaction, as a strong performance and breakout would easily facilitate the Nifty’s journey to fresh historical highs in the near future.

The upcoming INFY results, due post-market today, mark the critical event that will determine the next market move, and the strategy to hold fire on longs until this volatility passes is highly judicious. Despite a clear underlying bullish bias, the lack of interest in taking a position before the outcome is sensible event-risk management. The entire long thesis is clearly hinged on a decisive cash close above the key ₹1525 resistance level. Should the expected positive results reaction materialize and force a breakout above ₹1525, it would trigger the entry signal, immediately opening up sharp upside targets of ₹1574 and subsequently ₹1623 in the following sessions. In essence, the game plan is clear: await the results, then only proceed to enter long if the stock confirms the positive news by clearing the ₹1525 technical hurdle.

The technical picture for TATAPOWER is signaling that a major high-conviction breakout is in the making, but the entire move is conditional on one critical price point: ₹410. This level is the final resistance barrier, and a sustained, decisive break above it will serve as the unequivocal confirmation signal for traders. The underlying strength is significant, with weekly cycles “significantly trending bullish,” providing strong foundational momentum for the rally. Once the ₹410 trigger is pulled, the immediate cash segment targets become ₹430, with the next key target set at ₹460 in the near to medium term. The strategy here is straightforward: watch the ₹410 level like a hawk, and be prepared to buy and hold to ride the expected acceleration to the upside.

TCS appears poised for a significant turning point, signaling that the medium-term corrective phase is concluding. Technical analysis points to ₹ 2866 as the anticipated durable bottom—a critical low from which any further dip is expected to be minimal, confirming the stock is reaching a climax reversal point. A bullish perspective suggests initiating a conservative long position, especially as the Quarterly Results on October 9th approach. The decisive trigger for a strong breakout will be a successful breach of the ₹ 2975 cash level, which opens the path to sequential targets at ₹ 3055 and ₹ 3125. The prudent strategy is to observe the initial reaction post-results, then look to accumulate further long positions, confident that the imminent reversal will take hold regardless of the near-term volatility.