Signs of bullishness are visible in these 2 banking stocks
The condition of the banking sector has been quite sluggish in the stock market for some time. Most of the investors had their eyes fixed on big private banks like HDFC or ICICI and major indices. But now the direction of the market seems to be changing a bit. Amidst the calmness of the big banks, mid-sized banks have started increasing their pace. If we analyze the technical charts, RBL Bank and Federal Bank have emerged as two special stocks, which have crossed many important milestones. Signs of new bullishness can be clearly seen in both these stocks. At present both these stocks are trading above their major moving averages.
Big breakout seen in RBL Bank
According to digital investment company Grow, after dipping to low levels last year, RBL Bank shares have made a great comeback on the charts. This stock was continuously climbing up the stairs, but for some time it was stuck in the limited range of Rs 300 to Rs 340. Ultimately the stock has strongly crossed the important level of Rs 338. In the technical language of stock market it is called ‘breakout’. This is a clear indication that big investors are now buying this stock.
The stock is resting above the 20-day and 50-day exponential moving averages (EMA). When the 20-EMA line is above the 50-EMA, it is considered a strong bullish trend in the market. Along with this, the MACD indicator is also moving in the positive direction, which shows the increasing buying power. Experts believe that now the zone of Rs 330 to Rs 338 will act as a strong support for this stock.
Federal Bank crosses important milestone
According to Grow, the stock of Federal Bank used to hover around the level of Rs 302 for several months. Every time the stock tries to touch this price and falls back downwards. But now this stock has broken this stubborn barrier. After crossing the level of Rs 302, it now looks much stronger than before. On technical parameters, Federal Bank is also trading proudly above all its important moving averages.
In this also the MACD indicator has given clear bullish signals. The way the stock is continuously making higher highs, it shows that investors have confidence in it for the long term. Experts are of the opinion that as long as this stock remains above Rs 302, there is every possibility of a sharp rise in it further.
What is the right plan for investors?
Market experts believe that a real and successful breakout is identified by three things. First, the stock should be trading above its major moving average. Second, it must successfully overcome any long obstacle or resistance. Thirdly, technical indicators should also put their stamp on this bullishness. At present, all these three qualities are visible together in the shares of both RBL Bank and Federal Bank. In such a situation, investors and active traders can include these two stocks in their watchlist to understand the further movement of the market.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
