Stocks to buy for 2026: These 5 banks can rally up to 30%, says mkt expert

ICICI Bank, HDFC Bank, IndusInd Bank from private lenders, and state-run SBI and Bank of Baroda look favourably placed on charts, says Aakash Shah, Technical Research Analyst of Choice Equity Broking.

Technical Outlook on Banks for 2026

  The banking sector continues to remain a key outperformer on the charts, with both private and PSU banks showing constructive price structures. While private banks are consolidating within long-term uptrends, PSU banks are witnessing steady accumulation after strong rallies.  Technically, private banks offer stability through structured uptrends and consolidations, while PSU banks provide higher beta opportunities via continuation patterns. If the banking index sustains above key supports, the sector may deliver 18–30 per cent upside into 2026. Stock-specific breakouts and disciplined risk management will remain critical for execution.  From a technical perspective, the following five stocks stand out with a favourable risk–reward set-ups heading into 2026. 

ICICI Bank

Likely Target: ₹1,500–1,550  Upside Potential: ~25–30%  Likely support: ₹1,300–1,320 

 

 

  ICICI Bank is trading inside a well-defined rising channel on the daily chart. Recent corrections have respected the lower end of the channel, indicating trend strength. As long as the stock holds above channel support, the broader uptrend remains intact. A breakout above the mid-channel resistance could trigger the next leg higher. 

HDFC Bank

Likely Target: ₹1,050–1,080  Upside Potential: ~20–22%  Support: ₹950–960 

 

  HDFC Bank is consolidating above a rising trendline support, forming a range-bound accumulation structure near long-term resistance. The stock has absorbed selling pressure well, indicating institutional participation. A decisive close above the range high would confirm a trend resumption. 

IndusInd Bank

Likely Target: ₹1,000–1,050  Upside Potential: ~25–30%  Support: ₹780–800 

 

  IndusInd Bank has formed a rounded bottom on the daily chart, followed by a breakout attempt above neckline resistance. This pattern suggests a gradual shift from distribution to accumulation. Sustaining above breakout levels is key for follow-through momentum. 

SBI

Target: ₹1,100–1,150  Upside Potential: ~18–22%  Support: ₹930–940 

 

  SBI is consolidating after a strong rally, forming a bullish flag while holding above key moving averages. This is typically a continuation pattern in strong trends. A breakout from the consolidation zone could attract fresh momentum. 

Bank of Baroda

Target: ₹330–350  Upside Potential: ~20–25%  Support: ₹275–280   

 

  Bank of Baroda is forming a high-base consolidation after a strong impulsive up-move, with price holding above horizontal demand and rising moving averages. The broader structure remains bullish, indicating accumulation at higher levels   Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.