SBI, Oriental Bank and Allahabad Bank: Should you buy PSU bank stocks?

A new all-time high in SBI after a year, Golden Cross on Oriental Bank and the overall positive trend in Allahabad Bank suggest upsides from the current levels.

A landslide victory to the incumbent Narendra Modi-led BJP (Bharatiya Janata Party) in the 2019 Lok Sabha elections boosted investor sentiment in a big way last week that saw benchmark indices S&P BSE Sensex and Nifty50 rallying nearly 4 per cent.

Sectorally, banks led the rally with the Nifty Bank index surging over 1,760 points or 6 per cent. Nifty PSU Bank index rallied around 13 per cent during the period. So, are PSU bank stocks a good buy? Here's a look at what the technical chart indicates for PSU bank index and its key components -

NIFTY PSU