Nifty Bank faces resistance at 200-DMA, focus shifts on mid-cap banks

As of now, the downside is limited in mid-cap banks with volumes staying subdued.

After rising in the early trade, bank stocks slipped in the negative territory on Monday amid broad-based selling in the market. Nifty Bank tumbled over 700 points or 3 per cent to 23,750 levels with all the 12 constituents trading in the red. 

Bank stocks were in focus in the trade as today is the last day for the Moratorium 2.0 and the Reserve Bank of India is unlikely to extend the moratorium on repayment of bank loans beyond August 31. 

Here's a look at how Nifty Bank and some mid-cap banks look on charts.

NIFTY BANK: On Monday, the index resisted at 200-day moving average (DMA) placed around 25,084 levels. This indicates some profit-booking and may result in building short positions if the downtrend continues for another two sessions. That said, the overall trend is highly bullish in terms of the sentiment. This may defend the lower support area at 23,400 to 23,600 levels. The Relative Strength Index (RSI) appears to be in an overbought condition, but the momentum on the Moving Average Convergence Divergence (MACD) appears to strongly hold the upside. CLICK HERE FOR THE CHART
 
Bandhan Bank Ltd (BANDHANBNK): The counter is strongly resisting 50-DMA since Friday, 28 August 2020, suggesting a selling pressure. If this hurdle does not get surpassed, the price may eventually lose strength as RSI may turn into a negative crossover. That said, till the counter is trading above Rs 300, one can expect a rebound. CLICK HERE FOR THE CHART
  
IDFC First Bank Limited (IDFCFIRSTB): This counter displays strength as it has surpassed the 200-DMA with a firm rise in volumes. The bullish trend is gaining support from RSI and MACD which are defending their support values. RSI is trading above 60 value and MACD is trading with a positive crossover without any signal of turning down. The closing basis support stays at Rs 31 levels with the rally might be moving towards Rs 40 levels. CLICK HERE FOR THE CHART

RBL Bank Ltd (RBLBANK): As the counter moves towards the 200-DMA level at Rs 226.50, some profit booking could be seen. Although the weakness is not supported by volume, the price is losing the strength and effectiveness. Till the counter trades above Rs 190, some recovery may be expected. The RSI is making a negative crossover; this may affect the positive sentiment. CLICK HERE FOR THE CHART
 
Federal Bank Ltd (FEDERALBNK): The counter is gradually rising towards 200-DMA with a support of 50-DMA, currently placed at Rs 54.10 levels. This move is witnessing profit booking around Rs 62 levels. This usually does not foresee a major sell-off as the volumes have remained subdued. A rebound above Rs 58 may present some strong recovery. CLICK HERE FOR THE CHART