ICICI Bank, HDFC Bank, SBI: Will Tuesday's recovery in bank stocks sustain?

As the Nifty Bank index shows a negative reversal, the banking stocks are struggling to conquer their respective resistance levels.

Banking stocks took a heavy beating on Monday with the Nifty Bank index tumbling over 8 per cent. On Tuesday, however, the stocks showed some recovery with the index trading nearly 0.5 per cent higher. 

Here's a look at what technical charts indicate for Nifty Bank and its key constituents 

NIFTY BANK: This index is highly resistant at 38.20% Fibonacci retracement as per the daily chart. The recent high of 21,967 suggests the retracement level of 22,050 holds a strong hurdle for the coming sessions. The overall momentum indicates “sell on rise” strategy with selling pressure emerging on every possible upside. The downward rally has a support of 19,500 levels; any close below the same may accelerate the selling impulse. CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK): Till this counter is trading above Rs 400 level, the positive bias may prevail. In the recent trading sessions, the numbers of gap up close have been very high showing a positive momentum. However, the counter witnessed a gap down close yesterday, which may affect the upside sentiment if Rs 400 is broken on a closing basis. The resistance remains in the range of Rs 450 to Rs 465 levels. CLICK HERE FOR THE CHART

State Bank of India (SBIN): Only a strong close above Rs 200 levels may push this counter into the bullish momentum. The daily chart suggests a consolidation formation with the lower-side support at Rs 170 levels. The volume scenario does not indicate a promising rise as they decline on every new session. The counter stays in “no trade zone” till Rs 200 does not get achieved. CLICK HERE FOR THE CHART

HDFC Bank Ltd (HDFCBANK): The “Ascending triangle” breakout witnessed a resistance of 50-day moving average (DMA) placed at Rs 1,006. Thereafter, the gap down close has further weakened the upside bias. As long as this counter trades below Rs 950 levels, the bearish sentiment may gain ground. This may accelerate if Rs 900 levels get broken on a closing basis. CLICK HERE FOR THE CHART

ICICI Bank Ltd (ICICIBANK): The Relative Strength Index (RSI) has a support of 40 values. Till this is held, one can expect a recovery towards Rs 350 and Rs 370 levels. The support remains at Rs 320 levels, as per the daily chart. Moving Average Convergence Divergence (MACD) is showing an upward rise that may not get carried forward if the price starts losing positive momentum. CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA): Today, on May 4, 2020 the counter has clicked another 52-week low, the sentiment is deteriorating and may continue to hold the bearish sentiment for some more sessions. The immediate resistance comes at Rs 48 and Rs 52 levels. CLICK HERE FOR THE CHART