IndusInd Bank, AU Bank, Tamilnad Mercantile Bank: How to trade these banking stocks?

Indian stock indices on Monday kicked-off the week on a positive note, thanks to buying in banking and financial stocks. The BSE Sensex advanced 401 points, or 0.67 per cent, to settle at 60,056.10. The NSE Nifty added 119.35 points, or 0.68 per cent. to 17,743.40.

Select results-bound banking stocks were on traders’ radar during the day including IndusInd Bank, AU Small Finance Bank and Tamilnad Mercantile Bank. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Tuesday's trading session:

IndusInd Bank | Buy on Dips | Target Price: Rs 1,200 | Stop Loss: Rs 1,050
IndusInd Bank has witnessed breakout of a triangle formation on the daily chart, but it is facing resistance at Rs 1,150 level. It has formed a base at Rs 1,000 level. The formation on the counter looks impressive. On the downside, the Rs 1,050 level is an important psychological support level, below which one can expect the stock to hit Rs 1,000 level on corrections. On the upside, the Rs 1,150 level is acting as an important trend-line resistance. Above that, one can expect the level of Rs 1,200 in the near-to-short term.

AU Small Finance Bank | Buy | Target Price: Rs 740 | Stop Loss: Rs 645
AU Small Finance Bank has witnessed the breakout of a triangle formation with strong volume. It has formed a base at Rs 550 level. The structure on the counter looks lucrative, as the stock is trading above its key moving averages. MACD is supporting the current strength while the momentum indicator RSI is also positively poised. On the higher side, the Rs 700 level is acting as an important psychological level. Above that, one can expect the stock to hit Rs 740 level in the near-short term. On the lower side, the first support will come at around Rs 645 level.

Tamilnad Mercantile Bank | Avoid | Resistance: Rs 420 | Support: Rs 399-400
Tamilnad Mercantile Bank is in the downtrend. The structure on the counter looks distorted, as the stock trades below its key moving averages. That said, the stock has a demand zone near Rs 399–400 levels. On the upside, the Rs 420 level is an immediate susceptible area; above this, one can expect a run-up towards Rs 440 levels in the near term.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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