Bouncing Back! SBI, Axis Bank, AU SFB cross key hurdles, more upside likely

Banking shares have bounced back strongly in trades on Thursday amid hopes of a peace deal between Russia and Ukraine on planned diplomatic talks.

The Nifty Bank index was the top gainer in trades on Thursday, as investors rushed to pick-up beaten down shares on hopes of a peace deal between Russia-Ukraine ahead of the planned diplomatic talks.

The Nifty Bank Index soared over 4 per cent or 1,500 points to 35,330. The Nifty Private Bank index rallied 4.3 per cent and the Nifty PSU Bank index added almost 4.5 per cent.

Meanwhile, the key benchmark indices S&P BSE Sensex jumped 2.5 per cent to 56,000-level, and the NSE Nifty was up 2.4 around 16,700-level in mid-morning deals.

The Nifty Bank is followed by Nifty Financial Services and Nifty Realty, which added approximately 4 per cent each.

Here’s a near-term outlook on select banking shares following today's strong gains:-

State Bank of India (SBIN)
Likely target: Rs 495
Upside potential: 5.50%

The shares of State Bank of India crossed the crucial 200-day moving average (DMA) with the Relative Strength Index (RSI) forming a positive crossover, and rose above the oversold territory. The 200-DMA is set at Rs 464 and now acts as an immediate support for the stock, shows the daily chart. The next hurdle comes at Rs 495, which is its 100-DMA, the trend seems to be heading in this direction.  CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK)
Outlook: Needs to take out the pressure range

After taking the support of 200-weekly moving average (WMA), currently placed at Rs 648.70, the stock has exhibited a positive bias and seems headed towards conquering Rs 737, its 100-WMA. The next obstacle stays at Rs 747, which is its 50-DMA. So, in short, the range of Rs 747 to Rs 737 appears to be the pressure range for Axis Bank.  CLICK HERE FOR THE CHART
 
AU Small Finance Bank Limited (AUBANK)
Likely target: Rs 1,250 to Rs 1,230
Upside potential:  5%

AU Small Finance Bank stock seeks stability above the 200-DMA, set at Rs 1,174. The current stock market price is well above the 200-DMA, as the stock has gained over 3 per cent in today’s sessions at Rs 1,180 level so far in the day. The trend suggests that the nextg move could be in the direction of Rs 1,250 to Rs 1,230 levels, which seems to be next imminent resistances, shows the daily chart set-up.  CLICK HERE FOR THE CHART

IndusInd Bank Ltd (INDUSINDBK)
Likely target: Rs 1,000
Upside potential:  8%

The current chart structure, on the daily chart, indicates a broad sideways movement for the stock. That’s said, the current gap-up rally of over 5 per cent highly hints at a further move towards Rs 1,000-mark, its 200-DMA resistance. The support for the stock stands at Rs 870, needs to be considered on a closing basis.  CLICK HERE FOR THE CHART
 
Punjab National Bank (PNB)
Likely target: Rs 39
Upside potential: 7%

Although, shares of Punjab National Bank hover near the horizontal resistance of Rs 36.20, the formation of Inverse Head and Shoulder on the RSI suggests a positive bias. A closing basis support comes at Rs 34 with the momentum directing an upside to Rs 39 level. CLICK HERE FOR THE CHART