Nifty Bank index eyes 45,000-mark; BoB, Axis, YES Bank can rally up to 33%

So far in 2022, the Nifty Bank Index has soared 24 per cent, far outperforming the benchmark indices, the BSE Sensex and Nifty 50, which have gained close to 8 per cent each.

The equity markets have exhibited resilience to recent sell-offs, with banking stocks leading the rally from the forefront. Since early November, the Nifty Bank Index has scaled record highs and has now surpassed the 44,000-mark, a sentimental trigger for further optimism. 

So far this year, the Nifty Bank Index has soared 24 per cent, far outperforming the benchmark indices, the BSE Sensex and Nifty 50, which have gained close to 8 per cent each. 

On a year-to-date basis, within the banking space, the Nifty PSU Bank index has outperformed the Nifty Private Index by skyrocketing 78 per cent, compared to a 24 per cent rally in the latter index.

Punjab and Sind Bank, Bank of Baroda, and Union Bank of India, were top performing stocks having surged 165 per cent, 141 per cent, and 125 per cent, respectively, while top contenders in private banking stocks were Yes Bank and Axis Bank - up 65 per cent and 35 per cent, respectively, since the start of the calendar year.

Going ahead, here’s the technical outlook on select banking stocks:-

NIFTYBANK

Likely target: 45,200 and 45,500

Upside potential: 2.60% to 3.30%

After conquering its all-time high in early November this year, the banking benchmark has seen a gradual upside. This move points to a sustained rally that has absorbed all the selling pressure emerging in the uncharted territory. The trend is resilient, and the momentum continues to stay buoyant.  Here onwards, only a breach of 43,000 could lead to a change in sentiment; otherwise, the trend seems headed towards to 45,200 and 45,500 levels.  CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA)

Likely target: Rs 225

Upside potential: 17%

Shares of Bank of Baroda are witnessing robust buying in the overbought category of the Relative Strength Index since the last two months. The stock is overcoming all the hurdles, with volumes staying supportive to the upward trend. As of now, the immediate cushion for the stock exits at Rs 180 mark, which needs to be monitored on a closing basis. The optimistic trend is on the course to reach Rs 225, as per the technical charts. CLICK HERE FOR THE CHART

Punjab and Sind Bank (PSB)

Likely target: Rs 50 and Rs 55

Upside potential: 17% to 29%

In the past nine trading sessions, the stock has delivered high double-digit gain to the investors, with technical charts illustrating more upside in upcoming sessions. Immediate support for the stock comes at Rs 36, and only a decisive breakdown underneath this support would mean a shift in the sentiment. The bullish charts are hinting at Rs 50 and Rs 55 as the next levels of resistance.  CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK)

Likely target: Rs 1,100

Upside potential: 16%

After hitting a new all-time high over Rs 866.90 in October this year, the stock rallied towards Rs 920 where it confronted a stiff hurdle. The stock has now overcome this barrier, paving breakout to the next leg of upside. As long as this breakout mark of Rs 920 is defended, the stock is anticipated to rally in the uncharted territories. The next major obstacle comes at Rs 1,100 mark. CLICK HERE FOR THE CHART

Yes Bank Ltd (YESBANK)

Likely target: Rs 30

Upside potential: 33%

The monthly chart illustrates a short-term bottom formation for the shares of Yes Bank, with an “Inverse Head and Shoulder” breakout indicating an upside to Rs 30 level. Immediate support for the stock is seen at Rs 20 and Rs 18 levels. CLICK HERE FOR THE CHART