INSUBCONTINENT EXCLUSIVE:
The banking space has been the leading contributor to the rally in the market since March, with Bank Nifty gaining 14 per cent during the
period compared to 9 per cent gain in the Nifty
The banking index touched a fresh record high of 30590.95 during Tuesday’s session before closing 1.4 per cent higher at 30531.35
ET spoke to three technical analysts for their outlook on the Bank Nifty
They expect the Bank Nifty to see further strength to 31,0200-31,300 levels which would mean another 2.2-2.5 per cent gain from current
levels.
Rajesh PalviyaHead-Technical and derivatives, Axis SecuritiesBank Nifty started the week on positive note and managed to give
breakout of last eight day consolidation range of 29700-30200 on closing basis
The chart pattern suggests if Bank Nifty sustains above 30500 level then it would continue its upward momentum
We can see 30800-31200 levels in near term
However, on the lower side 30400-30250 are likely to act supports for minor corrective action
On the daily chart, Bank Nifty continues to hold and sustain above its 20-day simple moving average which indicates positive bias in
The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias so buying on dips
continues to be our preferred strategy.
Top 3 banking stock picks: Buy Kotak Bank at Rs 1370-Rs 1380 for target of Rs 1430-Rs 1450 with stop
loss of Rs 1,350
Buy IndusInd Bank at Rs 1800-Rs 1817 for target of Rs 1850-Rs 1875 with stop loss of Rs 1775
Buy ICICI Bank at Rs 403-Rs
408 for target of Rs 430-Rs 440 with stop loss of Rs 396
Swapneel MantriTechnical Analyst-Institutions, Sushil FinanceIn our ET article
dated March 4 we had first given breakout call on Bank Nifty
Since then the index has had a 3000 points rally
The rally has been led by ICICI Bank, Axis Bank and State Bank of India
At current levels, though upside seems capped, we expect the uptrend to continue with short to medium term target of 30900-31200 levels
We expect other components of the Bank Nifty such as IndusInd Bank and Kotak Mahindra Bank to join the rally.
Top 3 banking stock picks: At
current levels ICICI Bank, Kotak Mahindra Bank and SBI shares are looking good for higher targets of Rs 421-Rs 440, Rs 1425 and Rs 341
respectively.
Sameet ChavanChief Analyst - Technical and derivatives, Angel BrokingBank Nifty is in a strong bull market ever since it broke
out from its previous sturdy wall of 27500
After rallying more than 15 per cent in such a short span, some breather was needed and this is what we witnessed in last three weeks
Looking at Tuesday’s bump up, it appears that it is about to resume its uptrend and is all set to make fresh record highs
As of now, we do not see any sign of reversal and hence, do not expect this rally to fizzle out soon
Yes, in between we are likely to see pause or hiccups, but all this is eventually likely to be bought into
31000–31300 are possible next junctions for the banking index.
Top 3 banking stock picks: Expect HDFC Bank to head to Rs 2380 – Rs 2420
over the next few weeks.
Expect ICICI Bank to head towards Rs 440 – Rs 445.
Expect RBL Bank to head to Rs 740-Rs 760 in the medium
