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We recommend a buy in the stock of IDFC from a short-term perspective. It is apparent from the charts of the stock that following a medium-term downtrend from its January peak of Rs 184, the stock took support at its key base level at Rs 135 in late March this year. Subsequently, the stock reversed direction, triggered by positive divergence in the daily moving average convergence divergence indicator. Since late March, the stock has been on a short-term uptrend. Its significant support at Rs 150 cushioned the stock last week and again this week.
On Wednesday, the stock surged 4.5 per cent accompanied by above average volume breaching its 50- and 200-day moving averages. The daily as well as weekly price rate of change indicators are featuring in the positive terrain indicating buying interest. We are bullish on the stock from a short-term perspective. We expect its rally to continue and reach our price target of Rs 164.5 or Rs 168 in the approaching trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 154.8 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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