Post rate hike by RBI, SBI, BoB look stronger than private banks on charts

Public sector banks are well placed on charts, indicate positive upside in coming days, while Private Banks rigorously need to take off their respective hurdles.

The RBI Governor Shaktikanta Das announced a half percentage point hike in the repo rate, on expected lines, as infaltion remained elevated, and a depreciating rupee coupled with global uncertainties weighed on the Indian economy. 

The governor stated that inflation has been hovering around the 7 per cent mark, and they expect it to remain elevated around 6 per cent % in the second half of the year.

Since May this year, the central banker has hiked rates four times, with a total of 190 basis points. According to analysts, RBI's reluctance to change stance from 'withdrawal of accommodation' indicates that more monetary policy tightening going ahead. READ MORE

Post the rate hike, shares of rate sensitive sectors mainly banks led the market pullback. The Bank Nifty soared over 2 per cent, with the likes of Punjab National Bank (PNB), Bank of Baroda and Federal Bank rallying more than 4 per cent each.Among the heavyweights, HDFC Bank and Kotak Bank surged over 3 per cent each, SBI and Axis Bank added 2 per cent each.

Here's a technical check on select banking stocks:-

State Bank of India (SBIN) 

Likely target: Rs 600

Upside potential:  13.50%

After struggling to overcome the hurdle at Rs 540 level in November last year and simultaneously in February 2022, the government-owned leding marjo succeeded in taking a leap over the resistance in August. 

The current price structure indicates a retracement to the same threshold, to create a base for an intensified upsurge. The trend is reasonable until the cushion of Rs 500 is not taken off. Overall the bullish trend points to a rally towards the Rs 600 mark. CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK)

Outlook: Broad structure reveals sideways trend

On a broader scale, shares of Axis Bank are seen trending in a consolidation phase, shows the weekly chart. Downside plunge is protected near the Rs 600 mark support, whereas the upward rise is restricted to Rs 850 level. Though, the range is wide, the price action is not able to throw an clear outlook. Either side breakout of the range could add another Rs 200 point rally. CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA)

Likely target: Rs 155

Upside potential: 17%

Bank of Baroda shares, which have risen 65 per cent so far in this year, are reluctant to dip severely amid major sell-offs. This is so due to the “Golden Cross” breakout witnessed at Rs 120 in July 2022, after almost four years. The optimistic pattern suggests a gradual upside to Rs 155, which is the next obstacle, as per the weekly chart.  CLICK HERE FOR THE CHART

HDFC Bank Ltd (HDFCBANK)

Outlook: Subsequent hurdles on pull back 

While the HDFC Bank stock indicates its failure to conquer the major hurdle at Rs 1,650 since February this year, the support of 200-weekly moving average (WMA) set at Rs 1,275 provides respite on the downside. The immediate resistance for the stock now exists at Rs 1,570 level, which the stock must go through to build a positive bias. Moreover, the Moving Average Convergence Divergence (MACD) has risen over the zero line suggesting a positive momentum.  CLICK HERE FOR THE CHART

Punjab National Bank (PNB)

Outlook: 200-WMA acts as hurdle

Shares of Punjab National Bank have consecutive hurdles placed at Rs 42 and Rs 47 levels. The 200-WMA is placed at Rs 47, which needs to be taken off with aggressive volumes.  Only then, shall the medium-term outlook for PNB shares seek bullishness. CLICK HERE FOR THE CHART