D-Street Buzz: Banks trade higher with RBL Bank, IndusInd Bank up 2-3%; SBI, Axis Bank gain

The Indian stock market has hit 6-month high following rise in global market. Sensex is down 15.25 points or 0.04% at 38783.83 at 10:42 hours and the Nifty shed 9.30 points or 0.08% at 11457.20.

Among the sectors, Bank Nifty gained half a percent led by RBL Bank which jumped over 3 percent followed by State Bank of India, Axis Bank, IndusInd Bank, ICICI Bank and Bank of Baroda.

Among the PSU Banking names, Canara Bank added over 2 percent while JK Bank, Central Bank of India and Bank of Baroda are the other gainers.

Rajeev Srivastava, Chief Business Officer at Reliance Securities recommends a buy on SBI with target at Rs 235. The stock reversed forming Double Bottom Pattern around Rs 180 and later managed to recover partial losses of the week. We believe the stock will continue its up-move for the short-term, as rise in Stochastic & RSI from their oversold zone & bull market support area (respectively) is in favor of probable rebound, he said.

Nilesh Jain, Technical and Derivatives Analyst - Equity Research at Anand Rathi Shares and Stock Brokers is of the view that the major support of a triple bottom formation is placed at 21,000 levels on the daily chart. Private sector banks started to join the rally where index heavyweights HDFC Bank, ICICI Bank and Axis Bank look positive on the charts.

Based on the data, we are expecting an outperformance in the Bank Nifty.

Nifty Financial Services was trading in the green with Cholamandalam Investments up 3 percent followed by M&M Financial Services, PFC, Shriram Transport and REC.

The most active banking stocks in terms of volumes included SBI where 3,95,14,497 shares were traded followed by ICICI Bank (2,30,94,223) and RBL Bank (2,12,55,093).