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The stock of Dhanlaxmi Bank advanced 3.4 per cent on Wednesday, showing signs of bullishness. Investors with a short-term perspective can consider buying the stock at current levels. Following an intermediate-term downtrend, the stock found support at around ₹30 in late March. Since then, it has been on a short-term uptrend. In early May the stock jumped, decisively breaking the significant resistance at ₹35 as well as its 21- and 50-day moving averages. This resistance level subsequently turned into a key support and arrested the stock’s corrective decline.
The stock appears to have resumed its short-term uptrend now. The relative strength index on the daily chart is about to enter the bullish zone from the neutral region. The short-term outlook is bullish. It has potential to extend its rally and reach the price target of ₹39 and then ₹40 in the forthcoming session. Buy the stock with a stop-loss at ₹36.7 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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