HDFC Bank, ICICI Bank: What technical charts indicate for private banks

Most private banks have given steady returns in the last one month post reduction in the corporation tax. ICICI Bank tops the list with over 23 per cent gains, followed by Axis Bank (up nearly 16 per cent), and HDFC Bank (up around 13 per cent). Nifty Private Bank index, on the other hand, has climbed 12 per cent while Nifty Bank has risen over 11.50 per cent. The benchmark Nifty50 index has added around 10 per cent during the same period.

Here's a look at what technical charts indicate for Nifty Bank and key private banks.   

NIFTY BANK: After a steep rise due to corporation tax reduction, the index has seen profit-booking. It did breach 200-day moving average (DMA), which became its resistance level later on. It took nearly 10 sessions to scale above 200-DMA and this, in turn, triggered the positive sentiment. The average acted as support. During the same time, Moving Average Convergence Divergence (MACD) did not fall below zero line. The weekly chart has never convincingly closed below 100-DMA during the corrective phase.  CLICK TO VIEW CHART

HDFC Bank Ltd (HDFCBANK): The “Ascending Triangle” formation on the daily chart with a positive bias suggested an upside. This got exhibited after five sessions as it gained momentum on every dip around Rs 1,225, which is its neckline. It has been a significant level as the counter failed to close above it for several sessions before breaking out strongly. This has helped Relative Strength Index (RSI) to reach a positive crossover. CLICK TO VIEW CHART

ICICI Bank Ltd (ICICIBANK): Sustaining above Rs 440 was a big task for this counter a week ago. The moment it conquered this level with strong volumes, the upside was certain. Not only it showed strength in the Relative Strength Index (RSI) and MACD, but as soon as it moved above Rs 460, additions of volumes were substantial. The counter is trading above 50-week moving average from the past one year. CLICK TO VIEW CHART

Axis Bank Ltd (AXISBANK): The counter has seen resistance at 100 and 200-DMA in recent times and reduction in the corporation tax did not demonstrate much of a positive impact. Although the major technical indicators showed upside, its own price indicated weakness. It has managed to swing above the same averages, but sustainability has always been a question. CLICK TO VIEW CHART

RBL Bank Ltd (RBLBANK): The selling pressure since July this year has been severe and destroyed the upside sentiment. It did try to consolidate in September; however, in the process it breached significant support resulting in more price disruption. It also witnessed resistance at 50-DMA in the same period. The counter has struggled to conquer Rs 300 in the recent trading sessions. CLICK TO VIEW CHART