Investors with a short term perspective can buy the stock of DCB Bank at current levels. Since taking support at the long-term base level of ₹140, the stock has been in an intermediate-term uptrend forming higher peaks and troughs. While trending up, the stock had decisively breached a key resistance at ₹190 in March this year. This level had subsequently turned into a key base and provided support in the previous week. Thereafter, the stock continued to trend upwards. It hovers well above the 21- and 50-day moving averages.

On Monday, the stock gained 2.5 per cent breaching a key resistance at ₹205. With this rally, the stock has reinforced the bullish momentum. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Both the daily as well weekly price rate of change indicators hovers in the positive territory implying buying interest. Moreover, there has been an increase in daily volume over the past four trading sessions.

The short-term outlook is bullish for DCB Bank. Targets are ₹216 and ₹220. Traders can buy the stock with a stop-loss at ₹203.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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