ICICI Bank, Kotak Bank, HDFC Bank: what are the key levels for banking blue-chips?

Dalal Street stocks extended winning streak for the straight seventh session on Tuesday, with benchmark equity indices settling higher on the back of strong domestic and global cues. The BSE Sensex jumped 311 points, or 0.52 per cent, to close at 60,157.72. The NSE Nifty added 98.25 points, or 0.56 per cent, to settle at 17,722.30. Large cap banking stocks namely HDFC Bank, ICICI Bank and Kotak Mahindra Bank buzzed quite a bit during the session.

Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on the three stocks ahead of Wednesday's trading session:

Kotak Mahindra Bank | Hold | Target Price: Rs 1,900-1,950 | Stop Loss: Rs 1,750

Kotak Mahindra Bank has been moving in a long consolidation range since November 20 on the weekly chart. It has now formed a Double Bottom formation at around Rs 1,650-1,700 zone. The same has been confirmed on the breakout above the Rs 1,750 level. The formation of the counter looks lucrative for traders , as it is trading above its key moving averages. On the downside, the Rs 1,750 level will act as an important psychological support level, breaching which the stock can hit Rs 1,700 level. On the upside, the Rs 1,900 level would act as an important resistance level; above this, one can expect the level of Rs 1,950 in the near-short term.

HDFC Bank | Resistance: Rs 1,700-1,750 | Support: Rs 1,600
HDFC Bank witnessed a breakout of a Triangle formation. In the past, it tested its breakout level at around Rs 1,530 and started a new leg of rallying towards the Rs 1,700-level. The overall structure looks lucrative, as the stock trades above its key moving averages. The MACD is supporting the current strength while the momentum indicator RSI is also positively poised. On the upside, Rs 1,700 is the neckline and an immediate hurdle for HDFC Bank; above this, one can expect a move towards the Rs 1,750 level. On the downside, the Rs 1,600 level has a strong demand zone at any pullback.

ICICI Bank | Hold | Target Price: Rs 900-920 | Stop Loss: Rs 850

ICICI Bank has formed a base at the Rs 800 level on the weekly chart. On the daily chart, it witnessed a breakout of an Inverse Head and Shoulders formation with strong volume. It also retested its previous breakout level of Rs 860. The counter's overall structure is favourable for traders, as the scrip is trading above key moving averages. On the higher side, the Rs 900 level is acting as resistance; above this, one can expect the level of Rs. 920 in the near-short term. On the lower side, a cluster of moving averages have formed a base at Rs. 850.

(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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