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Investors with a short-term perspective can buy the stock of IDBI Bank at current levels. The stock had jumped 7.6 per cent on Tuesday, breaking above a key resistance at around ₹38. Following a medium-term downtrend, the stock had recorded a 52-week low at ₹33.3 in mid-May 2019 and changed direction triggered by positive divergence in the daily relative strength index and price rate of change indicator. Since then, the stock has been in a near-term uptrend.
After testing a key resistance at ₹38 for more than two weeks, the stock eventually breached it on Tuesday. The stock has also breached its 21-day moving average. There has been an increase in daily volume over the past two weeks. The daily RSI is charting upwards in the neutral region and is likely to enter the bullish zone. The weekly RSI has recovered from the oversold territory and is on the brink of entering the neutral region from the bearish zone. The daily price rate of change indicator features in the positive terrain implying buying interest.
The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹41.5 and ₹42.5 in the coming trading sessions. Traders can buy with a stop-loss at ₹38.3.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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