Stock Fundamentals

Trading pick of the week: Karur Vysya Bank (₹52.8): Buy

Yoganand D | Updated on February 06, 2021

Investors with a medium-term perspective can buy the stock of Karur Vysya Bank at current levels. The stock gained 8.8 per cent with extraordinary volume on Friday, breaking above a key barrier at ₹50.

 

In early December 2020, the stock had encountered a resistance at around ₹50 and, thereafter, it was on a sideways movement between ₹41 and ₹50. Last week, the stock skyrocketed 24.5 per cent, accompanied by good volume and broke out of the range. This rally strengthened the intermediate-term uptrend that has been in place since recording a 52-week low at ₹18.15 in March 2020. It trades well above 21- and 50-day moving averages. The daily relative strength index have entered the bullish zone.

Besides, the daily as well as the weekly price rate of change indicators hover in the positive terrain, implying buying interest. It can continue to trend up and reach targets of ₹60 and ₹63. So, buy with stop-loss at ₹47.5.

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Published on February 06, 2021
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