Axis, RBL, IndusInd: Pvt banks may provide shorting opportunites on rise

A Death Cross, Descending triangle and a breach of significant levels reflect downside up to 16% for these banking shares

NIFTYBANK
Likely target: 33,800 and 33,000
Downside potential: 2.50 to 5%

The Nifty Bank violated two major supports on the charts. Its 200-day moving average (DMA) positioned at 35,738 and a 50-weekly moving average (WMA) set at 35,390 levels. The overall trend has turned negative and as long as these levels are not conquered, the weak bias may see an exaggerated momentum. In the current situation, any bounce is likely to encounter another round of a selling pressure. The bearish sentiment expresses downside towards 33,800 and 33,000 levels, according to the daily and weekly setup. CLICK HERE FOR THE CHART
 

IndusInd Bank Ltd (INDUSINDBK)

Likely target: below Rs 800
Downside potential:  8%

The inability to overcome the selling pressure in the range of Rs 970 to Rs 950 has hampered the positive sentiment. The immediate resistance falls between Rs 920 to Rs 900 levels. The trend is weak and any move below Rs 830 is likely to see added selling pressure. Hereon, the stock could struggle to cross the immediate resistance and slip below Rs 800 levels, according to the daily chart. The Relative Strength Index (RSI) is failing to sustain above the oversold territory, a sign of a weaker strength. CLICK HERE FOR THE CHART

 
RBL Bank Ltd (RBLBANK)
Likely target: Rs 150
Downside potential: 12%

The weekly chart of RBL Bank Ltd hints of a “Lower Low, Lower High” pattern which displays a bearish signal. Moreover, the Moving Average Convergence Divergence (MACD) continues to struggle at crossing the zero line upward. The stock price and the technical indicator exhibit a weak momentum and the trend may decline in the direction of Rs 150 levels.  The immediate resistance comes at Rs 188 and Rs 200 levels. CLICK HERE FOR THE CHART
 
Axis Bank Ltd (AXISBANK)
Likely target: Rs 620 to Rs 600
Downside potential: 9%

The “Death Cross” has totally shattered the positive sentiment for Axis Bank shares, as per the daily chart. A gap-down session has further taken a toll on the reversal trend. The negative bias suggests a downside towards Rs 620 to Rs 600 levels, which is the last accumulation range, as per the weekly chart. The MACD has broken the zero line downward indicating a bearish sentiment for the coming sessions. The immediate resistance falls at Rs 690 levels.  CLICK HERE FOR THE CHART

 
Bandhan Bank Ltd (BANDHANBNK)
Likely target: Rs 210
Downside potential: 16%

The shares of Bandhan Bank have broken the crucial support of Rs 250 and heading towards Rs 210, which seems the next support for the current weakness, according to the weekly chart. The overall structure denotes “Descending triangle pattern”. On reversal, the stock has hurdles near Rs 262 and Rs 270 levels. The volumes reflect a selling pressure on long candles indicative of a negative bias, as per the daily chart. CLICK HERE FOR THE CHART