Banking stocks in focus: Technical indicators suggest up to 28% upside in Axis Bank, SBI, including other 3 counters

A domestic brokerage firm Progressive Share Broker lists out the technical triggers of large and mid-cap banks and sees a potential of up to 28 per cent in the bank stocks such as Axis Bank, SBI, HDFC Bank, ICICI Bank, and Federal Bank.  

The banking and financial segments on Monday witnessed massive buying interest after HDFC Bank announced a merger with promoter HDFC Limited. Amid this, a stupendous rally was seen in Nifty Bank on Monday, however, the 12-share index saw profit booking on Tuesday as it slipped around 1.5 per cent at the close. 

See Zee Business Live TV Streaming Below:

Technically, Nifty Bank is in a secular uptrend with a cyclical downtrend on weekly basis, the brokerage firm said. It added, that the trendline breakout was observed in the RSI and the Inverted Head & Shoulder breakout was seen in the Daily chart. The target of the pattern comes around 40,100.  

Axis Bank  

Axis Bank shares are about to give a breakout from the Symmetrical Triangle Pattern; the RSI Indicator is oscillating in an Ascending Triangle Pattern. The stochastic oscillator has already given a positive crossover and approximately, the target of the pattern comes to around Rs 1000 per share, which translates into an upside of around 28 per cent from Monday’s closing.  

The stock on Tuesday trading flat with positive gains, up merely 0.3 per cent to Rs 796 per share on the NSE intraday. 

State Bank of India (SBI)  

SBI shares have given a breakout from a continuation pattern that is Flag and Pole; a joint breakout of 50 DMA and stiff resistance has been observed in the stock. RSI oscillator has also given a breakout from its range.   

The target of the pattern comes around Rs 556 per share, which translates into an upside of 8.5 per cent from Monday’s closing.  The stock on Tuesday is trading flat with a positive bias to Rs 516.4 per share on the NSE.  

HDFC Bank  

HDFC Bank stock is about to give a breakout from an Inverted Head & Shoulder Pattern. The neckline of the pattern comes around at the resistance of 200 DMA (Daily Moving Average), breakout from the same will result in a joint breakout.   

The target of the pattern comes around Rs 1740 apiece, which translates into an upside of over 5 per cent from Monday’s closing. The stock on Tuesday cracked over 3 per cent to Rs 1606 per share on the BSE, after closing over 8 per cent on Monday amid the amalgamation announcement.  

ICICI Bank  

ICICI Bank shares have given a breakout from an Ascending Triangle Pattern; a joint breakout of 200 DMA and stiff resistance has been observed in the stock. The target of the pattern comes around Rs 807 apiece, which translates into an upside of over 8 per cent from Monday’s closing.  

The stock on Tuesday was up over 1 per cent to Rs 755.5 per share on the BSE intraday.  

Federal Bank  

Federal Bank shares have also given a breakout from a continuation pattern that is Flag and Pole. The trendline breakout was witnessed in the RSI oscillator. The stock is oscillating in a massive Symmetrical Triangle Pattern as per charts.  

The target of the pattern comes around Rs 110 per share, which translates into an upside of over 7 per cent from Monday’s closing. The shares of a mid-cap bank on Tuesday are trading over 3 per cent lower to Rs 97.7 per share intraday low on the NSE.