The short-term outlook for the stock of Dena Bank is bullish. On Tuesday, the stock opened with a gap-up and surged 4.5 per cent to close on a strong note. The stock has been gaining strength since the beginning of the week. It has shot up 10 per cent in just two trading sessions.
Prior to this rally, the stock was hovering above the 200-DMA in a sideways range between ₹35 and ₹38 for about a week. The strong rise this week has broken this sideways consolidation. Immediate support is in the band between ₹38 and ₹37 which is likely to limit the downside in the near term. A rise to ₹45 is possible in the coming days. Traders with a short-term perspective can go long. Stop-loss can be placed at ₹36 for the target of ₹44. Revise the stop-loss higher to ₹41 as soon as the stock moves up to ₹43. The 200-DMA near ₹35 is an important short-term support. The outlook will turn negative only if it declines below this support level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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Published on June 28, 2016
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