SBI, HDFC Bank and ICICI Bank: How to limit losses and put correct stop-loss

Vishal Wagh, Research Head at Bonanza Portfolio shares his technical view on SBI, ICICI Bank and HDFC Bank. His detailed analysis will help traders understand how to limit their losses and put correct stop-loss. He thinks market volatility may be more in the coming week so strategies should be followed for better returns going in to next week.

Vishal Wagh, Research Head at Bonanza Portfolio shares his technical view on SBI, ICICI Bank and HDFC Bank: Reuters

Vishal Wagh, Research Head at Bonanza Portfolio shares his technical view on SBI, ICICI Bank and HDFC Bank. His detailed analysis will help traders understand how to limit their losses and put correct stop-loss. He thinks market volatility may be more in the coming week so strategies should be followed for better returns going in to next week.

SBI share price: The current news flows and momentum in PSU banks have kept SBI in news. The SBI has also given a sharp rally and gained more than 40% on a closing basis and 50% considering the recent top in Feb 2021. On the downside, in Covid-19 fall, it has tested 150 which is 80 points down from the said range, which is approximately 67% of the range. Post breakout above 350 it has tested 427 last week which is again around 77 points up this is also around 65

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On the weekly chart, SBI has created a 'Gravestone Doji', whereas on a daily basis it has created an Evening star pattern. At the same time, RSI is indicating a bearish diversion. The daily close is below the 8-day rolling pivot. This is a bearish setup. So, a Fibonacci retracement of 23.80% of the entire rally is around 362. Post looking at the above analysis the upper side seems limited in SBI to 427-435 levels and on the lower side 1st support level is at 370-360 range. If broken these levels then it will be ready for further fall till 330-325 levels. SBI Share price today is Rs 394, down Rs 5.5 or 1.4%.

ICICI Bank share price: ICICI Bank is near given 138% returns from the lows of March 2020. In the last week, the Icicibank has created a high of 669 and RSI on a weekly basis, quoted above 75 the post year 2010 and in last week it has shown a 'Black cloud cover pattern' which is bearish. On a daily basis, it has created a Harami pattern early last week and a selloff post that has confirmed the recent top in place at the same time RSI on a daily basis also drift below 60 levels. ICICIbank has also closed below 8 days' rolling Pivot. There is an open gap on Budget day between the 545-551 zone.The 8 weeks rolling pivot is at 583 levels. So, in coming weeks the levels of 583 and 550 may work as major support for ICICIBank, and on the higher side recent high of 669 will work as resistance. ICICI Bank share price today is Rs trading flat at Rs 624.

HDFC Bank Share Price: HDFC Bank has doubled itself from the bottom of March 2020. Early last week, it created the 'Evening Star' pattern on a daily basis with a bearish diversion on RSI. And close of last week is below 8 days' rolling pivot and 20 dema. All thing observation shows the high is in place for a very short term. On the other hand, weekly and monthly charts indicate that the bullish trend is intact till the time it is above 1400 levels, as higher high higher low chart formation is in progress. There is an open gap between the 1482-1497 zone. So, in the coming weeks, HDFC Bank may witness a range-bound consolidation and the range will be from 1491 to 1600. Only on the breaking of 1491, it may see progress towards 1400 levels. HDFC Bank share price today is Rs 1552, up Rs 13 or 0.9%.

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