HDFC Bank stock may outperform Nifty Bank, IndusInd Bank shares may do well

On the weekly chart, the BANKNIFTY have made a high of 4,5782.75 and closed the session at 4,4879.5 levels, down by 1.29 per cent lower than the previous week's close.

On the weekly chart, the index has formed a bearish candle and has closed at 4,4879.50 levels. This bearish candle is a break on the bullish momentum. The RSI momentum indicator is currently trading around 60 levels. The low of the bearish candle is around 4,4279.40 levels, indicating also a strong support for the index. The index has shown a sharp bounce from the support levels mentioned. If the index moves on the higher side, we expect HDFCBANK to outperform the BANKNIFTY index. Also, INDUSINDB BANK can be another front runner in private banking. While in PSU banks PNB and CANBK is expected to move higher and deliver a decent gain in the coming week.

The BANKNIFTY August futures are trading at a 121.70-point premium to the BANKNIFTY spot. Also index’s futures levels has been able to close above 4,5000 at 4,5001.60 levels.

The OI distribution for BANKNIFTY Put options shows that 4,4500 have the highest concentration, which may act as support for the current expiry. BANKNIFTY Call strikes 4,5500 and 4,6000 saw significant OI concentrations and may act as resistance for the current expiry.

On weekly charts we can witness a smaller resistance at 45650 levels. If BANKNIFTY sustains above the mentioned levels, it can move higher towards the all-time high levels of 46310 and above.

Strong support is located around 44590 levels which is also 50 Day EMA levels, if the Index closes below the mentioned support, momentum will shift to downside.

Support: 44300-44590

Resistance: 45650-45900

Bias- Sideways to Bullish

Views are personal. The author is Executive Director, Choice Broking