SBI, PNB: Here's how to trade banks post Q1 results and ahead of RBI Policy

Post Q1 results, major banking stocks have lost the upside bias. Most stocks are facing hurdles at upper levels.

The Nifty Bank index witnessed a cut of 0.70 per cent on Wednesday, with 12 of its 13 constituents trading in negative terrain.  Shares of State Bank of India, Axis Bank, and ICICI Bank traded fragile since the opening bell losing close to a 1 per cent, respectively. The trend in banking stocks remains sluggish, post their Q1 results.

The Reserve Bank of India (RBI) is set to announce its monetary policy tomorrow, and market participants will watch it closely, as it would clear its stance on the repo rate and inflation numbers. 

Here’s the technical outlook on banks post Q1 results and ahead of RBI Policy:-

State Bank of India (SBIN) 

Outlook: Support of the 200-SMA

The inability to surpass the hurdle of Rs 620, with a conclusive move led the State Bank of India’s shares to slide the support of the 50-days moving average (SMA) placed at Rs 586. Unless the counter conquers the 50-SMA, the trend is likely to remain fragile, despite possessing the support of 200-SMA (Rs 565). A breakdown beneath the 200-SMA could see this counter heading towards Rs 525-mark. CLICK HERE FOR THE CHART

ICICI Bank Ltd (ICICIBANK)

Outlook: May rally to Rs 1,200

The broader outlook remains upward, with a “Higher High, Higher Low” pattern that aims at scaling Rs 1,200-level in the run-up. On an immediate basis, the support of the 50-SMA need to be held firmly, which is presently situated at Rs 955-mark. A major rally is expected when the counter succeeds to float over Rs 1,000-mark. CLICK HERE FOR THE CHART

Canara Bank (CANBK)

Outlook: Bullish over Rs 360

Until the support of Rs 320 is guarded, the upward trend in the shares of Canara Bank to remain highly optimistic, as per the weekly chart. While the counter is struggling to cross the hurdle range of Rs 360 to Rs 350, the underlying momentum stays in favour of accumulation. A breakout over Rs 360 could see this counter hitting Rs 400-level. CLICK HERE FOR THE CHART

Punjab National Bank (PNB)

Outlook: Breakout over Rs 65

The bears may seize control over the PNB share if the support of Rs 58 is breached, as per the daily chart. Until that happens, the stock could see revival towards Rs 65, its next breakout mark. Once Rs 65 is surpassed, the price action may route towards Rs 72-mark.  CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK)

Outlook: Subsequent hurdles on the upside

Shares of Axis Bank have slipped beneath the support of 50-SMA, trigger selling pressure. The next support falls at Rs 901, its 200-SMA. The weak trend may alter only when the stock succeeds to conquer Rs 960, the 50-SMA, on a conclusive strength. The following hurdle is placed at Rs 98-mark. CLICK HERE FOR THE CHART