5 private bank stocks for your portfolio; Check trading strategy here

ICICI Bank stock looks strong on charts. Among others Bandhan Bank, IDFC First Bank, IndusInd Bank and RBI Bank can rally up to 21%; check key levels

Shares of private banks are on investor’s radar following the aggressive buying seen in trades on Wednesday. The Bank Nifty hit a record high of 51,957 led by strong gains in heavyweights HDFC Bank, ICICI Bank among others yesterday.

So far in the calendar year 2024, private banks have underperformed the broader market by a wide margin.

The Nifty Private Bank index is up merely 0.8 per cent, as against a 6.4 per cent gain on the Bank Nifty and 8.5 per cent rally in the NSE Nifty 50 index.

Going ahead, will the private banking shares outperform the peers? Here's what the charts suggests:

ICICI Bank

Current Price: Rs 1,137

Upside Potential: 5.5%

Support: Rs 1,095

Resistance: Rs 1,155

ICICI Bank stock is presently seen testing resistance around its higher-end of the Bollinger Bands on the daily scale at Rs 1,155 levels. On the upside, the stock can spurt to Rs 1,200 levels - wherein lies the super trend line resistance. CLICK HERE FOR THE CHART

On the weekly scale, ICICI Bank stock has been making higher highs and higher lows since December. The overall bias for the stock is likely to remain positive as long as the stock sustains above Rs 1,095 levels.

IndusInd Bank

Current Price: Rs 1,522

Upside Potential: 11.7%

Support: Rs 1,485; Rs 1,475

Resistance: Rs 1,590

After a long period of consolidation, IndusInd Bank seems to have taken support at it 20-MMA (Monthly Moving Average) and then bounced bank. The long-term chart suggests, that the bias is likely to remain favourable as long as the stock sustains above Rs 1,355 levels. CLICK HERE FOR THE CHART

Near support for the stock is seen in the range of Rs 1,475 - Rs 1,485. On the upside, the stock is likely to test the super trend line resistance at Rs 1,590 soon. Breakout above the same can trigger a rally towards Rs 1,700-mark.

Bandhan Bank

Current Price: Rs 204

Upside Potential: 11.8%

Support: Rs 194

Resistance: Rs 205; Rs 214

Bandhan Bank stock is attempting to breakout on the daily scale, the stock at present is testing resistance around its higher-end of the Bollinger Bands at Rs 205 levels; above which the next key hurdle stands at Rs 214 - the 200-DMA (Daily Moving Average). CLICK HERE FOR THE CHART

Given the positive momentum at the counter, the stock may attempt to extend the rally towards the 100-WMA (Weekly Moving Average) - a key hurdle the stock has been unable to conquer since June 2022. The 100-WMA stands at Rs 228. Breakout and sustained trade above the same can revitalize the stock.

In case of a dip, support for the stock can be expected around Rs 194 levels.

IDFC First Bank

Current Price: Rs 83.20

Upside Potential: 21.4%

Support: Rs 80; Rs 78; Rs 76

Resistance: Rs 84.40; Rs 89.30

IDFC First Bank stock is seen within striking distance of its 200-DMA, which stands at Rs 84.40; above which the stock can extend the rally to Rs 89.30. 

Going ahead, sustained trade above Rs 84 levels shall augur well for the stock, and it can potentially open the doors for a rally towards Rs 101. CLICK HERE FOR THE CHART

'The overall bias for the IDFC First Bank stock is likely to remain upbeat as long as the stock holds above Rs 76. Near support for the stock is expected around Rs 80 and Rs 78 levels.

RBL Bank

Current Price: Rs 269

Upside Potential: 15.2%

Support: Rs 250

Resistance: Rs 271; 277

RBL Bank stock is seen testing resistance along its super trend line, which coincides with the higher-end of the Bollinger Bands on the daily scale, at Rs 271 levels. Above which, the next hurdle stands at Rs 277. CLICK HERE FOR THE CHART

Key momentum oscillators, both on the weekly and monthly charts, are showing positive divergence. Hence, the stock may witness a sustained period of positive trend in the near-term. On the upside, the stock can surge to Rs 310 levels. Support for the stock is seen around Rs 250 levels.