The stock of Lakshmi Vilas Bank gained 4.8 per cent breaking out of a key long-term resistance level of ₹163, on Monday. This rally provides a buying opportunity to investors with a short-term perspective.
Significant support at around ₹135 limited the stock’s downside thrice earlier, viz, November, December 2016 and January this year. After taking support at around ₹135, the stock continued its uptrend and has been on a medium-term uptrend since late January. Gaining bullish momentum, the stock appears to have resumed its long-term uptrend across all time-frames. Both the daily and weekly relative strength indices are featuring in the bullish zone. Moreover, the daily as well as weekly price rate of change indicators are hovering in the positive territory, implying buying interest. The short-term outlook is bullish. Traders with a short-term view can buy the stock with a stop-loss at ₹165. Targets are ₹176 and ₹180 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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