ICICI Bank, RBL Bank, Federal Bank: Trading Strategies for these buzzing banking stocks

Domestic stock indices settled marginally higher on Wednesday amid a volatile trading session. Headline indices saw some selling but eventually recovered in the end. The BSE Sensex added 33.57 points, or 0.05 per cent, to settle at 69,584.60. The NSE Nifty gained 19.95 points, or 0.10 per cent, to end the day at 20,926.35.

A few stocks namely ICICI Bank Ltd, Federal Bank Ltd and RBL Bank Ltd are likely to remain under the spotlight today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

ICICI Bank | Buy | Target Price: Rs 1,140 | Stop Loss: Rs 960
ICICI Bank hit an all-time high of Rs 1020 after undergoing a significant decline in July, where prices had dropped sharply from a peak of Rs 1,008 to a low of Rs 899. The stock is currently forming a traditional Pole and Flag pattern, signaling a potential continuation in the trend. An expected breakout beyond the Rs 1,020 level could lead to a strength gain up to Rs 1,140. The outlook remains positive as long as the stock maintains a position above Rs 960.

RBL Bank | Buy | Target Price: Rs 316 | Support: Rs 250
RBL Bank appears poised to replicate the movement observed in June, breaking out from a rectangle pattern on the weekly chart. In the prior week, the stock saw a formation of bullish Belt Hold candlestick pattern from its 20-DMA, which suggest strength in the scrip. Additionally, the stock has reclaimed its position above all key moving averages on the weekly chart. Consequently, an anticipation of follow-up buying and the continuation of recent momentum is expected. It is recommended to consider buying RBL bank in the range of Rs 270-274 with a stop loss at Rs 250, for the target of Rs 316.

Federal Bank | Range-bound | Resistance: Rs 160 | Support: Rs 145
Federal Bank has witnessed profit booking over the last two weeks after attaining a new life-time high of Rs 159. Adding to the current scenario, the stock has recently formed an Inside Bar pattern on the weekly time frame. The indicators and oscillators present a mixed signal, with a bearish stochastic and a bullish MACD, indicating ambiguity regarding the directional move. Despite this uncertainty, there is a notable base formed around the Rs 145 levels on the downside. Consequently, a decisive move in either direction is imperative to establish a clear unidirectional trend.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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