As Nifty Pvt Bank index sets new peak; Here's how to trade banking stocks

Shares of IDFC First Bank, IndusInd Bank, Bandhan Bank, and Axis Bank may surge up to 15 per cent, show technical charts.

Nifty PVTBA (Private Bank) index clinched a new historic peak in the previous session, well ahead of Nifty PSUBA (Public Sector Bank). This milestone was buoyed by IDFC First Bank, IndusInd Bank, and Axis Bank, who are resiliently holding the optimistic bias, reaching fresh all-time highs.

On Wednesday, shares of IDFC First Bank, and IndusInd Bank were little shy of reaching further all-time highs in their current bull run. IndusInd Bank shares were trading slightly higher, while IDFC First Bank shares fell 0.40 per cent in an otherwise negative market, where Benchmark indices (BSE Sensex and Nifty 50) witnessed 0.50 per cent cut. 

Here’s the technical outlook of PVT Bank stocks amid index setting new all-time high:-

NIFTY PVT BANK

Likely target: 23,500

Upside potential:  4%

Following a breakout of the short consolidation between 22,500 to 22,000 levels, the private bank index has signalled a bullish upside for coming sessions. The price action appears resilient, with momentum pointing in the direction of 23,500-level.

While the strength occurs to have slowed down as the Relative Strength Index (RSI) displayed a negative reversal, the bullish trend is not letting bears to take control. The support for the current bias locates at 22,000-mark. CLICK HERE FOR THE CHART

IDFC First Bank Ltd (IDFCFIRSTB)

Likely target: Rs 82 to Rs 85

Upside potential: 15%

Shares of IDFC First Bank has surged 21 per cent so far this year, with a chart structure that shows a bullish dominance. The stock continues to maintain upward course, holding the 200-day moving average (DMA) as the key trend reversal mark, which it has not violated since August 2022.  

Immediate supports for the stock halts at Rs 67 and Rs 65. The 200-DMA is place at Rs 56.35-level. The optimistic trend is headed in the direction of Rs 82 to Rs 85 levels. RSI continues to see bullish bias in its overbought category. CLICK HERE FOR THE CHART

IndusInd Bank Ltd (INDUSINDBK)

Likely target: Rs 1,500

Upside potential: 15%

IndusInd Bank has clocked a new 52-week in the previous session, implying a beginning of a new trend. The stock is rising upward, with technical indicator; RSI, floating in the overbought category, which usually means an alarm for a profit booking, but the price action is not highlighting such candlestick patterns. 

A classic accumulation near Rs 1,000 has delivered a follow-up breakout, leading the price action to climb the Rs 1,500-mark, as per the daily and weekly chart. CLICK HERE FOR THE CHART

Bandhan Bank Ltd (BANDHANBNK)

Likely target: Rs 300

Upside potential: 12%

Shares of Bandhan Bank have conquered the 200-DMA set Rs 244-level, suggesting an upward sentiment. If the stock manages to hold this momentum over the 200-DMA, the trend could reach Rs 300-mark.

The stock has been on a roller Coaster since March 2021 and has failed to garner any follow-up buying. The stock may recoup the entire decline if it manages to sustain over the 200-DMA. CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK)

Likely target: Rs 1,050

Upside potential: 14%

Unless the stock slips under the breakout mark of Rs 900 levels, the momentum suggests that the trend is headed to reach a new all-time high. The current price action further reveals a positive move towards Rs 1,050-level.

The current all-time high is at Rs 970, which seems to be easily achievable, as per the current daily and weekly charts. And the stock has seen accumulation in the range of Rs 925 to Rs 905 level. CLICK HERE FOR THE CHART