Axis Bank, Bajaj Fin can dip up to 7%; GIC Hsg likely to gain, show charts

Meanwhile, SBI looks range-bound on charts, while shares of SBI Cards & Payments can pullback up to 7 per cent from present levels.

The Reserve Bank of India (RBI) on Thursday, November 16, mandated banks and non-banking financial companies (NBFCs) to increase the risk weighting on unsecured loans like personal loans and those on the credit card from 100 per cent to 125 per cent.

The risk weighting for bank loans to higher NBFCs too was hiked by 25 basis points.

As the increase in risk weighting means that banks will have to set aside more capital while extending such loans, the lenders in turn could increase the lending rates on such products. 

Loan portfolios that are likely to be affected due to the increase in risk weighting are about 30 per cent of the banks’ retail portfolio, which was around ~48.26 trillion at the end of September. READ MORE

However, the risk weight hike decision does not apply to housing loans, education loans, vehicle loans and loans secured by gold and gold jewellery. The microfinance and Self-Help Group (SHG) loans by NBFCs were also excluded.

Against this backdrop, financial shares tanked up to 9 per cent in trades on Friday, here's a technical outlook on select five stocks for the near term.

Bajaj Finance

Current Price: Rs 7,235

Target: Rs 6,770

Downside Potential: 6.4%

Bajaj Finance is trading below its key moving averages on the daily chart, with the stock almost testing its 200-DMA (Daily Moving Average) at Rs 6,853 in trades on Wednesday. However, in the last two days the stock has managed to pullback and trade above the lower-end of the Bollinger Band, indicating near support at Rs 7,185 level.

However, momentum on the weekly scale clearly remains in favour of the bears. The upside as per the weekly chart seems capped around Rs 7,400-level. Whereas, on the downside, the stock may test support around its 50- and 100-WMA (Weekly Moving Average) which converge around Rs 6,770 level. Break of the same could invite fresh trouble for the stock. CLICK HERE FOR THE CHART

SBI

Current Price: Rs 570

Outlook: Range-bound

SBI cracked over 3 per cent to hit a low of Rs 565 in Friday's intra-day deals. The stock is presently seen testing support around its 20-DMA at Rs 571. 

The 14-day RSI (Relative Strength Index) has given a negative divergence, while the Stochastic Slow is on the verge of turning negative. The MACD (Moving Average Convergence-Divergence) however is still positive on the daily chart. Given, the mixed behaviour in trend indicators, the support at Rs 571 is likely to play a crucial role in determining the near-term trend.

The overall price structure, suggests a range-bound trade, as the stock is trading below its 50- and 100-DMA, which are placed at Rs 583 and Rs 581, respectively, and are expected to act as resistance. On the downside, the stock has near support at Rs 563 - which is the 200-DMA. In case, that breaks, the stock can drift to Rs 550-odd levels. CLICK HERE FOR THE CHART

SBI Cards & Payments

Current Price: Rs 731

Outlook: Pullback likely

The stock tanked 7 per cent to a low of Rs 720.80 this morning. However, the stock recovered partially and was seen seeking support around the lower-end of the Bollinger Bands on the daily chart at Rs 728-odd levels.

Select key momentum oscillators like the Stochastic Slow and MACD are favourbale for the stock; hence, the stock may attempt to consolidate around the current levels and then pullback.

In case, the stock successfully manages to honour the support at Rs 728-odd levels, it could than attempt a pullback to Rs 760 or further higher to Rs 785 levels in the near term. CLICK HERE FOR THE CHART

Axis Bank

Current Price: Rs 998

Resistance: Rs 1,018

Targets: Rs 953; Rs 931

Downside Potential: 6.7%

Axis Bank has shed 4.5 per cent in the last three trading sessions, and is now seen trading below its 20- and 50-DMA on the daily chart. Further, the RSI and Stochastic Slow have also given a negative crossover, thus indicating a likely tepid bias going forward.

On the upside, the stock is likely to face considerable resistance around Rs 1,018. Whereas, on the downside the stock has near support of the 100-DMA at Rs 982. Break below the same can trigger a fall towards Rs 953 and Rs 931, shows chart. CLICK HERE FOR THE CHART

GIC Housing 

Current Price: Rs 191

Target: Rs 205

Upside Potential: 7%

Shares of GIC Housing were seen consolidating below its 100-DMA for the last nine trading sessions. Presently, the 100-DMA stands at Rs 191, and is acting as an immediate resistance.

However, the key momentum oscillators namely - the 14-day RSI and Stochastic Slow have turned favourable for the stock. Further, the MACD too is on the verge of turning positive. Hence, the stock is likely to breakout on the upside, and a swift move towards Rs 205 seems likely. CLICK HERE FOR THE CHART