India’s private banking stocks have always been important, not just in terms of index numbers but also in terms of how investors feel about the market.
Everyone on the street pays attention when these stocks trend bullish or bearish. Currently, HDFC BANK, ICICI BANK, and AXIS BANK all have good technical setups, but they are all at different points in their journeys.
Let us analyse the chart of these banking giants and decide the best stocks in which to invest.
HDFC Bank – The Re-Accumulation Phase
Source: TradePoint, Definedge
HDFC Bank has been trending in a broader range for almost 10 months. A lot of investors were disappointed because the stock wasn’t going up like some of its peers. But consolidation isn’t always a sign of weakness. Sometimes, it’s getting ready.
Recently, the price has shown signs of reversal from the lower end of this range. That lower band is acting like a demand zone, which is a place where buyers are quietly entering. The gap area from the previous rally has been filled and when a gap is filled and the price still goes up, it usually means that selling pressure has been absorbed. This structure looks like a re-accumulation phase from the point of view of Wyckoff theory.
To put it simply, re-accumulation happens when a stock that is already going up stops for a while. Strong hands use this sideways phase to add to their positions, while weak hands leave because they are impatient. The range usually has sharp drops, quick recoveries, and support that is tested over and over again.
As the price is showing signs of bullish momentum, the smart investors should start accumulating the stock.
ICICI Bank – Breakout, Retest & Resumption
The chart for ICICI Bank looks cleaner and stronger. The stock broke through its previous 52-week high, retested the breakout level and resumed the bullish trend. Strong trending stocks often have this pattern of breakout, retest, and then resumption.
Why does the level that broke out before act as a demand zone?
This is how the market works. Before, sellers were busy around that resistance level. Once the price clearly breaks above it, those sellers are no longer there. When the price goes back to that area, new buyers come in, and even investors who sold before may buy again. This change in behaviour turns resistance into support.
ICICI Bank’s ability to stay above its previous high shows that it is strong. The trend is still healthy as long as it keeps making higher highs and higher lows.
Axis Bank – An Outperformer
Source: TradePoint, Definedge
Axis Bank is outperforming the most other private banks right now. The stock recently hit a new all-time high of Rs.1,418. We call it “price discovery” when a stock reaches an all-time high. There is no overhead resistance, which is something that often helps momentum.
The levels of resistance that were there in the previous rally will become the demand zones. From a structural point of view, the Rs.1,180–Rs.1,300 range may probably be the accumulation zone for 2026. A healthy pullback into this area, if it has enough volume and the market as a whole is stable, could draw interest from traders and investors.
The primary uptrend will stay in place as long as Axis Bank stays above its previous swing lows on the weekly chart.
What are you Buying?
All three banks are technically constructive, but they are at different stages:
- HDFC Bank is showing signs of re-accumulation, which is a phase of building a base.
- ICICI Bank has already shown strength by breaking out and testing again.
- Axis Bank is currently in the lead, trading at new highs with clear momentum.
The trend in all three of these stocks will be very important for keeping the banking sector’s overall momentum going. Their combined strength backs up the market’s feelings about the banking sector. From a portfolio point of view, a balanced distribution across all three may help reduce risk while also taking part in sectoral growth. Perhaps, you can get started by adding these stocks to your watchlist.
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia is an Independent Research Analyst and is engaged in offering research and recommendation services with SEBI RA Number – INH000022075. He has two decades of experience in India’s financial markets as a trader and technical analyst.
Disclosure: The writer and his dependents do not hold the stocks discussed here. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such independent advisors if necessary.
