Five bank stocks that can rally up to 13% from current levels

Published On: Monday, August 9, 2021 | By:

Five bank stocks that can rally up to 13% from current levels

Since April 2021 the NIFTY BANK index has faced resistance at higher levels and has been unable to cross 36,000 levels, as per the weekly setup. The recent momentum, however, has propelled Nifty Bank above the said resistance and there are chances that it can see 36,750 levels in the days ahead, as per the daily chart. The overall structure of weekly and daily charts suggests a positive rally that could see Nifty Bank surpass 37,000 levels and gain more ground. The immediate support comes at 35,500 levels. NIFTYBANK Likely target: 36,750 and 37,000 Upside potential: 2% to 2.50%

1. HDFC Bank Limited

Likely target: above Rs 1,641 (all-time high levels)

Upside potential: 7%

A weekly close above the Rs 1,530 level may see a huge breakout in the stock that could lead to a new all-time high above Rs 1,641. Until the support of 50-weekly moving average (WMA), currently placed at Rs 1,403 mark is held decisively, the upside bias remains strong and the stock can move higher.

2. ICICI Bank Ltd

Likely target: Rs 750 and Rs 765

Upside potential: 6% to 8.50%

After claiming a new all-time high crossing the previous level of Rs 679.40, the counter is gradually rising upward with a firm support base. The positive bias is intact as long as the counter manages to uphold Rs 679 levels. The trend seems to be heading towards Rs 750 and Rs 765 levels, as per the daily chart.

3. State Bank of India

Likely target: Rs 480 and Rs 500

Upside potential: 9% to 13%

State Bank of India stock broke out from the “Golden Cross” chart pattern above Rs 445 levels with healthy volumes last week. This up move has the support of 50-DMA, which is currently placed at Rs 428 levels. The medium-term outlook remains bullish as long as Rs 397 is held decisively on a closing basis, which also is SBI's 100-DMA as per technical charts.

4. Axis Bank Ltd

Outlook: Breakout above the weekly close of Rs 780

Axis Bank needs to firmly close above Rs 780 levels on the weekly time frame for the stock to take a directional call. Once this happens, positive sentiment may prevail and the stock can trend higher. Until then, Axis Bank may see a mixed trend and remain range-bound. A breakout may then resemble ascending triangle pattern, which can take the stock towards Rs 850 levels, as per the technical analysis. The positive bias will remain intact above the support of Rs 700 levels.

5.IndusInd Bank Ltd

Likely target: Rs 1,150 and Rs 1,200 (after a decent move above Rs 1,060)

Upside potential: 8% and 13%

IndusInd Bank is firmly holding the support of 100-DMA, which is placed at Rs 978 levels. The current momentum shows a positive sentiment that could see the stock head in the direction of Rs 1,060 levels, which is a significant breakout mark. 

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