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We recommend a buy in the stock of Dena Bank from a short-term perspective. It is evident from the charts of the stock that since bottoming out in January at Rs 47.5, it has been on a medium-term uptrend. But, the stock met with resistance around Rs 104 in February and has been consolidating sideways largely between Rs 80 and Rs 104. In mid-May, it took support from the lower boundary and started moving higher with positive bias.
On Monday, it jumped five per cent with good volumes breaching its 21- and 50-day moving average. Both the daily and weekly relative strength indices are on the brink of entering the bullish zone from the neutral region. The daily price rate of change indicator is featuring in the positive terrain and weekly indicator has entered this terrain implying buying interest. The daily moving average convergence divergence indicator has signalled a buy and is about to enter the positive area indicating upward momentum.
We are bullish on the stock from a short-term perspective. We anticipate the stock's up move to prolong and reach our price target of Rs 96 or Rs 99 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 90.
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