The IDFC stock surged 7 per cent with good volumes on Thursday, surpassing its resistance at Rs 107. The stock has been in a medium-term uptrend since the 52-week low of Rs 76 recorded in late August. It took support at Rs 100 and resumed its uptrend this week, after a brief correction. The stock has also decisively breached its 21- and 50-day moving averages, displaying bullish momentum. IDFC’s recent rally is backed with good volumes, providing strength to the ongoing upmove.
The medium-term uptrend line is intact. Indicators on the daily chart have entered the bullish zone signalling upward momentum. The daily moving average convergence divergence indicator has signalled a ‘buy’. Buying interest is seen as both daily and weekly price rate of change indicators, which are featuring in the positive terrain. The short-term outlook for the stock is bullish. Traders can consider buying the stock while maintaining a stop-loss at Rs 110.2 level. The short-term targets are Rs 117.5 and Rs 120.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)