The Indian stock market witnessed a remarkable rally last week, with the Nifty50 climbing 4.2% following the ceasefire announcement in the India-Pakistan war. Responding positively to the peace deal, investors saw an opportunity to capitalise on improving market sentiment.
Defence and PSU stocks saw an impressive uptick, while banking stocks, especially smaller-cap ones, found their lost ground. Several banking stocks are trading under Rs. 100, presenting unique investment opportunities for traders looking to get in at attractive price points.
In this article, we will focus on three banking stocks that are catching attention due to their strong technical setups and bullish momentum.
1. South Indian Bank (SIB)
South Indian Bank (SIB) is a prominent private sector bank in India with a vast network of branches across the country. Established in 1929, the bank has been providing a wide range of banking services to both individuals and businesses. With a strong focus on digital banking, SIB has also been modernizing its operations to meet the needs of a growing tech-savvy customer base.
Weekly Chart
On the weekly chart, South Indian Bank has recently broken out from a 9-month consolidation zone. The breakout occurred after the stock price found support near the 50-week exponential moving average (50WEMA) and 200-week exponential moving average (200WEMA). This breakout, along with the sector’s overall strong performance, signals a potential for further bullish momentum.
In addition, the Relative Strength Index (RSI) on the chart has shifted into a bullish range, reinforcing the strength of the current price movement. The breakout and bullish RSI combination indicates that South Indian Bank could be poised for potential upward momentum in the near term.
2. Ujjivan Small Finance Bank
Ujjivan Small Finance Bank is a leading small finance bank in India, offering a wide range of banking products including savings accounts, fixed deposits, and personal loans. With a significant focus on financial inclusion, the bank serves millions of unbanked customers, particularly in rural areas, through its network of branches and digital platforms.
Ujjivan Small Finance Bank Weekly Chart
Ujjivan Small Finance Bank’s stock chart shows a similar breakout pattern to South Indian Bank, as it broke out of a consolidation range in April 2025. After the breakout, the stock price retested key support levels and resumed its bullish momentum in May 2025, signalling the potential beginning of a new trend.
Just like South Indian Bank, Ujjivan SFB has seen a bullish range shift on the RSI, reinforcing the positive momentum. This shift in RSI suggests that the stock has the potential to continue its upward trajectory in the coming weeks.
3. Bank Of Maharashtra (MAHABANK)
Bank of Maharashtra, a public sector bank, has been a key player in the Indian banking landscape. Known for its strong presence in Maharashtra, the bank offers a comprehensive range of banking services to both retail and corporate clients. With a focus on digital banking and operational efficiency, Bank of Maharashtra continues to grow its customer base and enhance profitability.
MAHABANK Weekly Chart
Bank of Maharashtra’s stock price has been consolidating within the 50WEMA and 200WEMA range. However, in April, a Bullish Belt Hold reversal candlestick pattern formed near the 200WEMA, signalling a potential reversal in price action. As the stock price broke above the 50WEMA, it confirmed the reversal and indicated that the stock could continue to rise.
Additionally, the RSI has reached a nine-month high, a strong sign of bullish momentum. The strength of the RSI, coupled with the bullish candlestick pattern, suggests that Bank of Maharashtra is well-positioned for a sustained uptrend. The technical outlook for MAHABANK indicates that it is poised for a potential rally in the near term.
Among the stocks trading under Rs. 100, South Indian Bank, Ujjivan Small Finance Bank, and Bank of Maharashtra are showing strong technical setups, with breakouts, bullish momentum, and favourable RSI shifts. For investors with a keen eye on emerging trends, these stocks could present significant upside potential, especially given the broader market’s positive momentum.
Disclaimer:
Note: We have relied on data from http://www.definedgesecurities.com throughout this article. Only in cases where the data was unavailable have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with UTI, Asit C Mehta, and Edelweiss Securities. Presently, he is an analyst at Definedge.
Disclosure: The writer and his dependents do not hold the Stocks discussed in this article. However, clients of Definedge may or may not own these securities.
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