Banking Sector Alert: SBI, BoB, Axis Bank conquer 200-DMA; what lies ahead?

Shares of SBI and Axis Bank can potentially rally to new life-time highs, suggests technical charts. Bank of Baroda stock too can jump another 14% from present levels; here are the key levels to track

Amid the frenzied rally in the banking shares on the stock exchanges, shares of few of leading banks such as SBI, Axis Bank and Bank of Baroda recently conquered the 200-Daily Moving Average (200-DMA). The 200-DMA, also known as the long-term moving average, is generally referred to in identifying a positive and negative trend.  On the bourses, the National Stock Exchange (NSE)-based Bank Nifty index has surged nearly 14 per cent from its April low of 49,157, and now quotes at life-time highs around 55,700 levels.  In comparison, the Nifty PSU Bank index has rallied nearly 16 per cent, but still quotes nearly 16 per cent below its all-time high of 8,053 levels. The PSU Bank index, however, has reclaimed its 200-DMA after a gap of five months.  In recent trading sessions, SBI, Bank of Baroda and Axis Bank climbed above their respective 200-DMAs. Here's what the technical charts indicate for these 3 banking stocks going ahead.    SBI  Current Price: ₹832  Upside Potential: 19%  Support: ₹816; ₹797  Resistance: ₹870; ₹917; ₹955  SBI stock is seen trading above its 200-DMA for the second straight trading session, after a gap of nearly 5 months. That apart, the stock is also seen trading firmly above the higher-end of the Bollinger Bands on the daily scale. Thus implying that the near-term bias is likely to remain upbeat as long as the stock trades above ₹816, followed by the 200-DMA support at ₹797.  The long-term chart suggests that SBI can potentially zoom past its summit at ₹912, to register a new peak around ₹990 levels. On its way up, the stock could face resistance around ₹870, ₹917 and ₹955 levels. CLICK HERE FOR THE CHART  Axis Bank  Current Price: ₹1,219  Upside Potential: 14.9%  Support: ₹1,205; ₹1,155; ₹1,130  Resistance: ₹1,240; ₹1,277; ₹1,340  Axis Bank is likely to trade on an upbeat note as long as the stock holds above ₹1,205. On the upside, the stock can potentially soar to ₹1,400 levels and record a new high. Interim resistance for the stock can be anticipated around ₹1,240, ₹1,277 and ₹1,340 levels. In case, the stock slips below ₹1,205, it may seek support around ₹1,155 and ₹1,130 levels. CLICK HERE FOR THE CHART    Bank of Baroda  Current Price: ₹255  Upside Potential: 13.7%  Support: ₹251; ₹242  Resistance: ₹259; ₹271; ₹280  After conquering its 200-DMA on April 16, Bank of Baroda stock has now given a fresh breakout on the daily scale on Tuesday. Going ahead, the stock is expected to trade on a buoyant note as long as it holds above ₹251; below which support for the stock is seen at ₹242. On the upside, the stock can potentially soar to ₹290 levels, with intermediate resistance likely around ₹259, ₹271 and ₹280 levels. CLICK HERE FOR THE CHART