ICICI Bank, SBI, BoB: How to trade bank stocks in this volatile market

Banking stocks have been highly volatile over the last few sessions. On Wednesday, Nifty Bank tumbled 838 points or 3.76 per cent to end at 21,427 levels while Nifty Private Bank index declined 4 per cent to 11,739.45 points. On Thursday, however, most banking stocks were trading in the green.

Here's a look at what major technical indicators suggest for Nifty Bank and its key constituents and what should be your trading strategy.
 

NIFTY BANK: This time the index did conquer 22,000 mark, which is 38.20% Fibonacci retracement level. One needs to gauge the follow-up buying for the breakout. If the follow-up buying does not happen, then the breakout remains on a weak wicket and an upside may witness selling pressure. The immediate support comes in at 20,700 and 20,300 levels, while the index is likely to see selling pressure around 21,600 levels. CLICK HERE FOR THE CHART
               
State Bank of India (SBIN): The overall trend for this counter remains positive till it trades above the 50-day moving average (DMA) located at Rs 175. That said, a major move is expected to emerge only above Rs 200 levels, an immediate resistance that is likely to see selling pressure. The volumes have remained subdued in the last 10 sessions. The Moving Average Convergence Divergence (MACD) is trading above the zero line indicating an upward bias. CLICK HERE FOR THE CHART
 
Axis Bank Ltd (AXISBANK):  This stock may witness strong selling pressure on an upside. It appears to have simultaneous resistances around Rs 450, Rs 465 and Rs 490 levels, as per the daily chart. Further, the MACD is showing a positive bias by gradually rising above the zero line with a positive crossover. The immediate support comes in at Rs 405 and  Rs 390 levels. CLICK HERE FOR THE CHART
 
HDFC Bank Ltd (HDFCBANK): The counter is trading with a “Higher high, Higher low” formation and has successfully crossed 100-DMA. One can expect a positive rally towards 200-DMA placed at Rs 1,124 levels with support of Rs 946, which is its 50-DMA, considering a broad view. The corrective moves towards Rs 980 – Rs 960 may see buying momentum as the Relative Strength Index (RSI)  broke out of “Inverse Head and Shoulder”, as per the daily chart. CLICK HERE FOR THE CHART
 
ICICI Bank Ltd (ICICIBANK): One can expect the rally to gain more steam only above Rs 400 levels. This remains a resistance for a short-medium term breakout. There is support at 50-DMA placed at Rs 339 levels. The volumes have remained moderate with technical indicators showing no major direction. CLICK HERE FOR THE CHART
 
IndusInd Bank Ltd (INDUSINDBK): The counter is trading in a range of Rs 330 - Rs 540 levels. The immediate support comes in at Rs 450 levels with resistance at Rs Rs 495 levels. The recent sessions had seen a rise in volumes. If this continues for a few more sessions, then price may see an uptick. CLICK HERE FOR THE CHART
 
Bank of Baroda (BANKBARODA): This stock may see short-term bullishness on the breakout of “Inverse head and Shoulder” as per the daily chart. Stability above Rs 51, which is the neckline, may induce strong buying momentum that can result in a rally towards Rs 59 and Rs 64 levels. The immediate support comes in at Rs 47. CLICK HERE FOR THE CHART