Max Financial Services (₹439.7): Buy

Yoganand D BL Research Bureau | Updated on August 20, 2019

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The stock of Max Financial Services (MFSL) jumped 5 per cent accompanied by above average volume on Tuesday, breaking above a key short-term resistance at ₹430. This rally provides traders with a short-term perspective an opportunity to buy the stock at current levels.

The stock has been in a sideways consolidation phase in a wide range between ₹360 and ₹465 since October 2018. Within this sideways movement, a significant support at ₹400 had been providing base for the stock over the past two months. The stock took support from this base and began to move upwards recently.

Adding strength to the up-move, it has breached the moving average compression (21-, 50- and 200-day moving averages) at ₹420. The daily relative strength index has entered the bullish from the neutral region. Further, the daily price rate of change indicator hovers in the positive terrain indicating buying interest.

The short-term outlook is bullish and the stock can test the upper boundary in the upcoming sessions. Targets are ₹458 and ₹467. Traders can buy with a stop-loss at ₹430.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on August 21, 2019

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