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We recommend a buy in Federal Bank at current price. It is evident from the weekly chart that the stock has been on long-term uptrend since March trough at Rs 188. We note that the stock has appreciated more than 100 per cent since this low. The stock marked an all-time high of Rs 418 on November 6 and is currently hovering around the peak. The stock’s medium-term up trend is in intact. The daily and weekly Relative Strength Index (RSI), which indicates the momentum in a stock, is featuring in the bullish region. The daily MACD (moving average convergence divergence) oscillator, another momentum indicator, is also featuring in the positive region. We note that the immediate support for the stock is at Rs 370 levels and the next support is at Rs 340 levels. Short-term investors can buy the stock with stop loss at Rs 370. We expect the stock’s rally to continue up to Rs 440 and then to Rs 470 in the medium-term.

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