ICICI Bank, Axis Bank, and HDFC Bank: Technical details highlighted for readers
Vishal Wagh, Research Head at Bonanza Portfolio says that banking and financial sector is facing major supply pressure issues thanks to the surging cases of Covid-19 and the steps like corona curfew and implementation of section 144 in a state like Maharashtra will add more fear to it. The second wave of Covid-19 has put selling pressure on the Indian market
Vishal Wagh, Research Head at Bonanza Portfolio says that banking and financial sector is facing major supply pressure issues thanks to the surging cases of Covid-19 and the steps like corona curfew and implementation of section 144 in a state like Maharashtra will add more fear to it. The second wave of Covid-19 has put selling pressure on the Indian market. Due to negative sentiment, the banking, Financial, and NBFC segments got hammered. He highlights trading strategies in ICICI Bank, HDFC Bank and Axis Bank. Readers should follow the target and stop-loss mentioned, this will help them to maximise profits and minimize losses in their trades.
Technical Analysis on ICICI Bank: Rs 520 – Rs 528 is a support zone and Rs 590 is a resistance zone
ICICI Bank has already given up its major gains post Budget and now it has just managed to hold above Rs 550 levels which were breakout levels on monthly basis in the beginning of the calendar year 2021. On a daily and weekly basis, ICICI Bank has started underperforming major indices. Though, ICICI Bank is showing major support around the weekly demand zone of the Rs 528 – Rs 540 area. On the monthly basis, it seems completed through back post-breakout above Rs 550 levels. So, on the lower side, Rs 520 – Rs 528 is a support zone. On the flip side, Rs 590 is a resistance zone. Only, post-breakout of either level, ICICI Bank may see further move, said Wagh
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Technical Analysis on HDFC Bank: Sell on rise till stock is below Rs 1480, stop-loss above Rs 1500
HDFC Bank has corrected till its major support of Rs 1350 and respected the same levels by showing a sharp bounce. In the process, it has retracted all the gains post-budget. Levels of Rs 1350 have tested five times in the last four months. HDFC Bank is underperforming major indices and other major banking stocks. It also has the weakest structure in all Nifty 50 banking constitutions. He said that while keeping all these things into consideration the strategy should be selling on a rally. On the flip side, levels of Rs 1480 – Rs 1500 will be a game-changer here. In conclusion, one can say that the sell on rising till it is below Rs 1480 will be the best suitable strategy. One should keep the risk management strategy also in focus in event of cutting above Rs 1500, highlights Wagh
Technical Analysis on Axis Bank: Range of Rs 567 – Rs 595 on lower side and Rs 795 – Rs 800 on higher side
Vishal says that Axis bank has managed to multiply it’s stock from the bottom of March 2020 at Rs 286 levels till the levels of Rs 799. At the same time, it is not able to cross Rs 826 the high of 2020. It is facing stiff resistance around the weekly supply zone of Rs 795 – Rs 820. The weekly supply zone normally took multiple attempts to break through. In a recent correction, Axis bank has still to test daily demand zone Rs 596 – Rs 568. On a daily, weekly and monthly basis, Axis bank is underperforming major indices and other major banking stocks. Currently, Axis Bank is just in the middle of the supply and demand zone. i.e. Rs 795 – Rs 800 and Rs 595 – Rs 567 respectively.
On its part, Motilal Oswal recommends BUY on ICICI Bank with target of Rs 617 and stop-loss of Rs 550. It also put a BUY recommendation on HDFC Bank with target of Rs 1501 and stop-loss of Rs 1365.
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