Sharekhan Technical Picks: 4 Private Bank Stocks From Rs 50-1,500, To BUY; Up To 18% Gains In 3-4 Weeks

Four private bank stocks including 1 small finance bank stock, trading between Rs 50 to nearly Rs 1,500 on BSE and NSE are technical picks of Sharekhan. There is a potential upside of 6% to as high as 17% in these 4 stocks. These are Axis Bank, IndusInd Bank, Ujjivan Small Finance Bank and IDFC First Bank.

Here is what brokerage Sharekhan has said about these four stocks from a technical view:

Axis Bank Share Price: (Target: 1246 - 1267| Reversal: 1136 | CMP: Rs 1161.75 )

As per Sharekhan, the stock was consolidating in a range and has broken out of that range on the upside. Further, the brokerage pointed out that for the past couple of weeks, it has been retested that breakout and now started the next leg of the up move.

Going forward, Sharekhan added that weekly Bollinger bands are expanding and prices are moving along the upper band suggesting a continuation of the up move. Also, the weekly momentum indicator has a positive crossover which indicates it has started a new cycle on the upside and dips should be bought into.

IndusInd Bank: (Target: 1573 - 1627| Reversal: 1400 | CMP: Rs 1459.75)

This private lender stock has been in a corrective phase wherein it witnessed an 18.5% correction. In Share khan's view, there are signs of trend reversal in the daily charts as the stock has started to form higher tops and higher bottoms.

According to the brokerage, the daily momentum indicator has triggered a positive crossover and started a new cycle on the upside which is a buy signal.

"We expect the stock to retrace the fall and target levels of 1573 - 1627 which are the 61.82% and the 78.6% retracement levels," Sharekhan added.

IDFC First Bank: (Target: 86 - 92| Reversal: 75 | CMP: Rs 76.42)

This IDFC stock has been on a slippery slope since August 2023. Sharekhan said, the stock has now reached the crucial support of the 50% Fibonacci retracement level (76) and is showing buying interest.

On the weekly charts, Sharekhan added that the stock has formed a Hammer pattern which is a trend reversal pattern and has also started with higher tops and higher bottoms on the daily charts indicating an uptrend.

Also, its weekly momentum indicator is on the verge of starting a new cycle on the upside which is a bullish sign. Sharekhan expects the stock to retrace the fall and breakout of the falling channel.

Ujjivan Small Finance Bank: (Target: 59 - 63| Reversal: 49 | CMP: Rs 49.70)

This SFB has also consolidated in a narrow range after a sharp run-up. Sharekhan mentioned that the stock's consolidation has taken the form of a triangle pattern on the daily charts.

Furthermore, the brokerage said triangles are trend continuation patterns, and it expects this consolidation to break out on the upside.

That being said, the daily momentum indicator has reached the equilibrium line and has started a new cycle on the upside suggesting the resumption of the next leg of the up move. Sharekhan added, "We are also witnessing a pick up in volumes suggesting accumulation."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.