Nifty Bank forms Golden Cross; SBI, HDFC Bank, ICICI Bk can surge up to 18%

Here are trading strategies for key banking stocks that will help you maximise your gain.

The Nifty Bank index on Thursday recorded a new peak of 41,840 after nearly 10 months. The Index has rallied 5.8 per cent thus far in September, and 25 per cent in three months.

This comes at a time when the frontline indices, the BSE Sensex and Nifty 50, are yet to reclaim their all-time high levels. In the past one year, the Nifty Bank index has rallied 17 per cent. Barring 2016 and 2020, the Nifty Bank index has recorded historic peaks in every year since 2013.

Among banking stocks, ICICI Bank and State Bank of India hit an all-time high level on Thursday, surging 2 per cent and 1.1 per cent, respectively. IDFC First Bank and Indian Bank reached a new 52-week high and moved up 1.6 and 1.1 per cent each in intraday deals on Thursday. 

Here's how you can trade these stocks for maximum profit.

NIFTYBANK

Outlook: Advancing towards 44,000

The index has formed a “Golden Cross” on the charts and can scale uncharted territories in the days ahead. Bulls have been aggressive in banking stocks ahd saw the index surpass 40,000 levels in a hurry. Till the support of 40,000 is defended on good volumes, the trend will remain firm with a chance that the index can further move up to 44,000 mark, translating into an upside of around 7 per cent from the current levels, according to the daily chart. CLICK HERE FOR THE CHART

State Bank of India (SBIN)

Likely target: Rs 650

Upside potential: 14%

The State Bank of India (SBI) stock has overcome the selling barrier of Rs 550, which was a stiff resistance since November 2021, reveals the counter's weekly chart. Even the Moving average convergence divergence (MACD) is supportive of the trend as it has crossed zero line. For now, the range of Rs 550 – Rs 540 shall act as a cushion for the bulls with the  stock likely to head towards the Rs 650 mark. CLICK HERE FOR THE CHART

ICICI Bank Ltd (ICICIBANK)

Likely target: Rs 1,050

Upside potential: 14%

ICICI Bank shares have broken out of the previous hurdle of Rs 861. This move emerged when RSI was in overbought category. Bulls are not giving up despite the intermittent selling pressure and are defending the recent support of Rs 840 and Rs 800 levels, shows the monthly chart. Stock price action suggests a rally to Rs 1,050 levels.  CLICK HERE FOR THE CHART

IDFC First Bank Ltd (IDFCFIRSTB)

Likely target: Rs 60

Upside potential: 14%

A Golden Cross breakout in daily chart suggests a quick upside to Rs 60 levels. The Golden Cross formation is an indication of a bullish undertone with stock price unlikely to see any weakness. Upon breakout, the stock exhibits strong momentum in an upward direction; and so shall be the case of IDFC First Bank stock. The immediate support comes at Rs 48 levels. The counter is not experiencing any negative undertones in the overbought territory of RSI, reveals its chart pattern. CLICK HERE FOR THE CHART

Indian Bank (INDIANB)

Likely target: Rs 225

Upside potential: 10%

Shares of Indian Bank have zoomed 53 per cent thus far in September. The overall trend continues to remain bullish with “Higher high, Higher Low” formation, while the Relative Strength Index (RSI) trades in the overbought category. The chart formation remains suggests that the stock has underlying strength and has not encountered any major hurdles. It can move up to Rs 225 levels in the days ahead. The immediate support emerges at Rs 195 and then at Rs 185 mark. CLICK HERE FOR THE CHART

HDFC Bank Ltd (HDFCBANK)

Likely target: Rs 1,800

Upside potential: 18%

The sharp reversal close to the 200-day moving average (DMA) at Rs 1,430 in late August pushed HDFC Bank stock to breakout of the “Golden Cross”. The counter is heading to fill the gap-down range of Rs 1,584 – Rs 1,575 level, which sounds like an easy task. The broader outlook points at a new all-time high of Rs 1,800 mark in the days ahead. The support comes in at Rs 1,470 mark, which needs to be adhered on closing basis if this counter was to move higher. CLICK HERE FOR THE CHART