Indian benchmark indices continued to move higher in the new year and settled higher on Thursday driven by the optimism over the Q3 results season by India Inc, starting next week. BSE Sensex soared 1,436.30 points, or 1.83 per cent, to end the session at 79,943.71. NSE's Nifty50 zoomed 445.75 points, or 1.88 per cent, to settle at 24,188.65 for the day.
Some buzzing banking stocks including CSB Bank Ltd, Federal Bank Ltd and YES Bank Ltd are likely to remain under the spotlight of traders for the session today. Here is what Kushal Gandhi, Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:
CSB Bank | Avoid | Resistance: Rs 336
The price action of CSB Bank has been under pressure from profit booking, resulting in a 30 per cent correction after a substantial 137 per cent rise from the June 2022 lows to record highs of Rs 422. Currently, the price movement is characterized by a lower high structure and remains below the key moving averages of 50 and 200 DMA, indicating a negative crossover and reflecting a lack of strength in the trend—an unfavorable development. At present, 200 DMA near the Rs 336 levels serves as immediate overhead resistance, and a decisive reclamation on a closing basis will be essential to prevent further drawdowns. Therefore, we recommend refraining from purchasing shares of CSB Bank at the current market price.
Federal Bank | Buy | Target Price: Rs 229 | Stop Loss: Rs 194
The price trend for Federal Bank has remained robust since the lows experienced during the covid period. Recently, the price action has been moving sideways within a broader range, with an immediate demand zone identified around the Rs 194-190 levels. Sustaining above this zone could attract further bullish strength to the banking stock. Notably, the stock has demonstrated improving signs in its EPS, price strength, and demand from buyers. The RSI across daily and higher time frames has been consistently trading above the median levels, showing no divergence from the price and indicating a presence of bullish momentum. We recommend purchasing the stock with a target price of Rs 229 and suggest maintaining a stop-loss at Rs 194.
YES Bank | Avoid
The share price of YES Bank is currently exhibiting a lower high price structure, signaling ongoing selling pressure. The stock is trading 40 per cent below its peak reached in February 2024, with the shorter-term moving average acting as an immediate supply zone. It is positioned below key moving averages on both the daily and weekly timeframes, accompanied by a negative crossover that suggests a lack of strength in the trend. Although technical indicators point to bearish implications, the stock also shows insufficient EPS and price strength. Therefore, we recommend avoiding any purchases of this stock.