Nifty 50 index on Monday closed marginally higher at 10348.05 points. It faced a rough last week and selling was across all sectors. Nifty Financial services index has fallen over 14 percent since its high around 11855.20. However some stocks still look better than others and might prove themselves to be good bets for one to six months period.
ICICI Bank (NS:) Limited, Close: 310.85 (+3.55), Oct 8, 2018
ICICI Bank Limited is in a rising trend channel in the medium- to long-term. The stock gave a buy signal from a double-bottom formation in early August and went up by 10 percent. After testing some resistance around 345 levels, the stock has corrected but has taken support and been hovering around the same breakout level at 311 for the past few trading sessions.
The volume balance indicator is positive, which corresponds to higher volume during price rise and lower volume during corrections. The RSI curve shows a rising trend, which could be an early signal for the price to rise again.
There is resistance between 345-362 rupees and a close above it may initiate a new buy signal. Until then our current recommendation weak positive instead of positive. There is support around 300 and further around 260 levels.Investtech's outlook: Weak positive
Axis Bank Limited, Close: 556.55 (-11.95), Oct 8, 2018
Axis Bank Limited shows strong development within a rising trend channel in the medium-term. Rising trends indicate that the company experiences positive development and that buy interest among investors is increasing.
The stock earlier tested its previous high around 660 rupees and turned down. The stock is testing the support around 550, which may give a postive reaction.
The recommendation will be entirely positive once Axis Bank closes over 620 level.Investtech's outlook: Weak Positive
Bank of Baroda, Close: 97.50 (-1.60), Oct 8, 2018
Bank of Baroda has fallen over 50 percent from its top in May 2017 and has broken down through the falling trend channel line. This fall was supported by increasing volume as shown by the red downward facing arrows in the medium-term chart. The stock tried to rise and tested the 155 level only to be turned down and hammered again by the sellers who have been selling at steadily lower prices to quit their holdings in this banking stock.
RSI is below 30 after the falling prices of the past weeks. The stock has strong negative momentum and further decline is indicated.
There is resistance around 113 rupees. Maintaining proper stop loss is always recommended.Investtech's outlook: Negative
Kiran Shroff, CMT
Technical Analyst, www.investtech.com
Disclaimer: All analyses used herin are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.