ICICI Bank, HDFC Bank, SBI: Trading strategies for these 3 buzzing largecap banking stocks

Indian benchmark indices saw a bout of profit booking in the fag-end of the session after scaling new highs on Wednesday and ended on a mixed note. Upcoming budget and monsoon will be key triggers for the markets in the near-term. BSE Sensex added merely 36.45 points, or 0.05 per cent to settle at 77,337.59. NSE's Nifty50 index dropped 41.90 points, or 0.18 per cent, to end the session at 23,516.

 

Some buzzing banking stocks namely State Bank of India (SBI), ICICI Bank Ltd and HDFC Bank Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

 

State Bank of India | Buy | Target Price: Rs 910 | Stop Loss: Rs 830

SBI has experienced a gradual decline from Rs 912 to the Rs 731-740 range where it appears to be bottoming out and consolidating as indicated by the historical chart patterns on the daily chart. This zone serves as a strong support base. Additionally, the RSI is ascending with a bullish crossover on the daily chart suggesting potential for continued upward momentum. A decisive move above Rs 860 would indicate further strengthening and could trigger an upward move towards the next target of Rs 910 in the coming days.

 

ICICI Bank | Buy | Target Price: Rs 1,255 | Stop Loss: Rs 1,090

ICICI Bank has demonstrated a consolidation breakout accompanied by considerable trading volumes indicating a sustained momentum in the ongoing trend. The momentum indicator RSI further reinforces the bullish sentiment by consistently staying above the critical level of 55. Regarding support and potential gains, the stock has established a robust foundation at the lower end, approximately Rs 1,090. This level is expected to serve as a support, acting as a safeguard against any potential downward movement.

 

HDFC Bank | Buy | Target Price: Rs 1,750 | Stop Loss: Rs 1,600

HDFC Bank is displaying signs of breaking out from a prolonged consolidation period and has successfully breached its previous month peak. The pattern implies an immediate target of Rs 1,750. On the downside Rs 1,600 is expected to act as a crucial support level. Both the MACD and RSI indicators are providing support to the current bullish momentum. The MACD indicates strength while the RSI is positively poised, affirming upward sentiment. Considering these factors, we recommend buying Biocon within the range of Rs 1,640-1,660, setting a stop loss at Rs 1,600 on a closing basis and targeting Rs 1,750.

 

 

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