YES Bank, Central Bank, Indian Overseas Bank: Trading strategies for buzzing banking stocks

Domestic equity indices will resume trade on Monday after falling in the previous four sessions. Rising macroeconomic concerns dented investor sentiment, as  the BSE Sensex dropped 221.09 points, or 0.33 per cent, to settle at 66,009.15 on Friday. The NSE Nifty plunged 68.10 points, or 0.34 per cent, to end at 19,674.25.

A few banking stocks seeing high volumes such as YES Bank, Indian Overseas Bank and Central Bank of India are likely to remain under the spotlight today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

YES Bank | Hold | Target Price: Rs 21-23 | Stop Loss: Rs 15
On the daily chart, YES Bank is trading in a range of Rs 16 on the downside and Rs 19 on the higher side. The stock has low relative strength and is underperforming benchmark indices. Even its momentum indicator is trading sideways. One can hold the stock at current level with a stop loss of Rs 15 for a target price of Rs 21–23 levels in the couple of weeks.

Indian Overseas Bank | Hold | Target Price: Rs 51-54 | Stop Loss: Rs 39
On the daily chart, Indian Overseas Bank is seeing higher-top higher bottom formation, which is a sign of strength. At present, it is consolidating the previous rise. The stock is outperforming benchmark indices. Even the momentum indicator MACD is positively poised. Hence, one can hold the stock at current levels with a stop loss of Rs 39 for targets of Rs 51-54 levels in the next couple of months.

Central Bank of India | Buy | Target Price: Rs 61-66 | Stop Loss: Rs 46
On the daily chart, Central Bank of India is observing higher top-higher bottom formation, which is a sign of strength. At present, after two days of correction, the stock has reversed and has gone up with higher volumes. It is a sign of strength. Further, the stock is outperforming benchmark indices. Even the momentum indicator, RSI, is positively poised. Hence, one can buy the stock at current prices with a stop loss of Rs 46 for target price of Rs 61-66 levels in the next couple of months.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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