Banking Sectors Market Stock Analysis Fundamental Screening Dec-25
Banking Sectors Market Analysis Which are Fundamentally Strong and HIGH Return Expecting in Week/Month. To optimize a banking portfolio for both fundamental quality and technical momentum, we have screened the top candidates in the current 2025 market. We can see All time low/ATH in market fundamental. Screening ranking all information updated here.
1. Fundamental Screening & Ranking
The following banks are ranked by a composite score of Revenue Growth (5yr CAGR), Debt-to-Equity (D/E), Return on Equity (ROE), and Earnings Consistency.
| Rank | Company | ROE (%) | Rev Growth | D/E Ratio | Valuation Note | Risk Flags |
| 1 | ICICI Bank | 19.47% | 59.7% | 0.81 | Trading at ~19x P/E; premium but justified. | High retail exposure. |
| 2 | HDFC Bank | 18.20% | 19.5% | 0.76 | P/E ~21x; historical mean support. | Merger integration lag. |
| 3 | State Bank of India | 18.97% | 15.2% | 1.15 | Deep value; P/BV ~1.58 is attractive. | NPA spikes in PSU space. |
| 4 | Axis Bank | 18.51% | 17.8% | 0.88 | P/E ~13-15x; high margin of safety. | Tech-spend compression. |
| 5 | Bank of Baroda | 16.38% | 18.5% | 1.02 | Undervalued; P/BV < 1.0. | Policy-driven volatility. |
2. Momentum & Structural Alignment
For momentum traders, we look for “Triple Alignment” (Daily, Weekly, and Monthly charts trending up) confirmed by Volatility Expansion and Relative Volume (RVOL).
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Kotak Mahindra Bank: Recently cleared a major resistance at ₹2,120. It shows a 90-day structural breakout supported by the 200-SMA and an RSI near 60.
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ICICI Bank: Leading the “Leading” quadrant in Relative Rotation Graphs (RRG). Monthly scale shows a bullish continuation candle with rising ADX (trend strength).
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State Bank of India (SBI): Dominating the PSU space with increasing volume. It has formed a “Cup & Handle” on the daily scale, suggesting a move toward ₹1,000+.
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3. Optimal Position Sizing & Allocation
To minimize drawdown, we use the Average True Range (ATR) to calculate stop distances. Assuming a ₹10,00,000 portfolio with a 1% Risk Per Trade (₹10,000).
Formula: $Position Size = \frac{Total Risk}{ATR \times 2}$ (using a 2-ATR stop)
| Stock | Price (LTP) | ATR (14-day) | Stop Loss (2-ATR) | Optimal Units | Allocation (%) |
| ICICI Bank | ₹1,389 | ₹28 | ₹1,333 | 178 | 24.7% |
| Kotak Bank | ₹2,159 | ₹42 | ₹2,075 | 119 | 25.6% |
| SBI | ₹980 | ₹22 | ₹936 | 227 | 22.2% |
| Axis Bank | ₹1,273 | ₹31 | ₹1,211 | 161 | 20.5% |
4. Short-Term “High Alpha” Candidates
For targets of >5% returns in <30 days, focus on stocks showing Volatility Expansion (Bollinger Band Squeeze Breakouts):
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Kotak Mahindra Bank: Post-breakout momentum targets ₹2,250 (approx. 4.5–6% upside).
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Punjab National Bank (PNB): Showing high relative volume with a PAT growth of 106% YoY; technicals suggest a short-term swing toward ₹125.
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Federal Bank: High-volume breakout on the weekly scale; currently a favorite for “catch-up” trades in the mid-cap banking space
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