SBI, PNB, Bandhan Bank: Trading strategies in bank stocks post Q4 results

Nifty Bank index may rise up to 2.25% once hits a new historic peak, shows technical charts

The Nifty Bank index on Monday was seen trading sluggish, while shares of State Bank of India, Punjab National Bank and Bandhan Bank gained in the range of 2.50 per cent to 0.50 per cent, following reporting their quarter ending March results last week. 

State Bank of India, the India’s largest lender, reported 83 per cent growth in standalone net profit and announced a divided Rs 11,30 per share.  Punjab National Bank also reported 474 per cent increase in its net profit on year-on-year basis. 

While Bandhan Bank declared close to 57 per cent decline in the net profit for the quarter ended march 2023.

Here’s the technical outlook for banks reporting their Q4 earning recently:-

NIFTYBANK

Likely target: Rs 650.

Upside potential: 2.25%

The trend in the Nifty Bank index continues to stay robust, with resilient sentiment overriding any major sell-off. The current support for the upward bias stays at Rs 43,200 and 42,600 levels, as per the daily chart. 

There is a divergence on the Relative Strength Index (RSI), nevertheless the trend is not letting bears to take the control. Once the index hits a new historic peak of 44,152, fresh upside could send the index in the direction of 45,000- 45,300 levels.  CLICK HERE FOR THE CHART

State Bank of India (SBIN) 

Likely target: Rs 650.

Upside potential: 8.50%

While shares of State Bank of India did provide a breakout of “Double Bottom”, as per the daily chart, the ongoing trend needs to absorb all the selling pressure emerging in the range of Rs 600 to Rs 580 zone.

Once the stock thrives post crossing this hurdle range, the breakout could foresee a new historic peaking crossing Rs 630 levels. Following this, fresh upside could propel stock in the direction of Rs 650 levels. The current support for the stock exists at Rs 560 level, which is the 200-day moving average (DMA). CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA)

Likely target: Rs 218.50

Upside potential: 9%

The 52-week high of Bank of Baroda is at Rs 197.20 and the stock is presently struggling to cross the Rs 190 level. The support for the stock emerges at Rs 170 mark, as the “Higher High, Higher Low” formation continues to bolster the lower swings. 

A breakout over Rs 190 could see this counter heading towards a new 52-high, seeking to cross the all-time high of Rs 218.50, as per the daily chart.  CLICK HERE FOR THE CHART

Punjab National Bank (PNB)

Outlook: Breakout over Rs 55

This is the second time in recent months that the Punjab National Bank shares’ failed to sustain over the 100-DMA set at Rs 51 levels. The support for the stock exists at Rs 46.30 level, which is its 200-DMA. 

Only a breakout over Rs 55, which may be possible if the counter manages to sustain over the 100-DMA, could see price action heading towards Rs 60 levels. CLICK HERE FOR THE CHART

Bandhan Bank Ltd (BANDHANBNK)

Outlook: Resistance of the 200-DMA

Shares of Bandhan Bank are battling to cross the 200-DMA set at Rs 245. If it succeeds, the breakout could spell a short-to-medium term bullish bias. Until that happens, the stock might retrace to Rs 228 and Rs 220, which are its 100-DMA and 50-DMA, respectively, as per the daily chart.

A breach of Rs 200 could then propel stock into a bear grip. On the contrary, a breakout over 200-DMA may see the price action leading to Rs 280 level. CLICK HERE FOR THE CHART

Canara Bank (CANBK)

Likely target: Rs 325

Upside potential: 11%

The monthly chart of Canara Bank shares’ exhibits a breakout of “Cup and Handle”, with price conquering the 200-monthly moving average (MMA). This move has triggered an optimistic bias for the medium-term perspective. The next hurdles for Rs 325 and Rs 335, as per the daily and weekly charts.

The broader trend is headed in the direction of Rs 350, which has seen sell-off in the recent past. Crossing of this mark would mean that next likely upside to Rs 400 levels. CLICK HERE FOR THE CHART