Today's Pick

ING Vysya Bank (Rs 303.2): Buy

Yoganand D. | Updated on September 28, 2011 Published on September 28, 2011

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We recommend a buy in the stock of ING Vysya Bank from a short-term perspective. After retracing 50 per cent Fibonacci retracement of its prior up move from March 2009 low of Rs 103 to November 2010 peak of Rs 443, the stock found support in the band between Rs 275 and Rs 285 on Monday.

Subsequently, it bounced up, also triggered by positive divergence in the daily relative strength index. On Wednesday, the stock jumped three per cent with above average volumes breaching its 21-day moving average. Daily RSI is inching higher in the neutral region towards the positive zone and weekly RSI has entered into the neutral region from the bearish zone.

Daily moving average convergence divergence indicator has indicated buy and is moving higher in line with the stock price. Further, after displaying positive divergence, the daily price rate of change indicator has entered the positive territory implying buying interest. We are bullish on the stock from a short-term perspective. We anticipate its up move to prolong and reach our price target of Rs 312 or Rs 320 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 295.

Published on September 28, 2011
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