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PSU Banks poised for a Mega-Rally?

As we look at PSU bank stocks, we notice that most of the stocks have the monthly momentum indicators which are in the oversold region. In the past when we have had the momentum indicators at such oversold levels, we have seen a strong rally in the stocks sometimes even to the tune of 100 to 200%. As we can see the current momentum indicators are again at the oversold region along with this, we also have the price showing a strong up-move backed by exceptionally good volumes. Keeping this in mind, there is a particularly good chance of a rally in the PSU banks. 

In the current scenario we are noticing that in Delhi despite the cases rising we are still not closing down. This means that in future too there is little chance of any sort of lock downs and that will be good for the economy(not sure about the health!). Combining this with the extremely oversold levels on the charts mean that the PSU banks will do a mean reversion. This sort of mean revision itself on the monthly charts can mean a significant rally for a swing trader. Another point to note is that relatively few market participants are talking about a rally in the public sector banks which means that the sector as a whole has probably not yet caught the fancy of the broader market participants which is a good sign as it means that there is a lot of juice still left. 

The charts are in the file embedded below. Have a look as they are self-explanatory in most cases.

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