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The stock of Federal Bank advanced 2.4 per cent accompanied by extraordinary volume on Monday. With this rally, the stock has strengthened the short-term uptrend and closed above a key resistance level of ₹98.5. Investors with a short-term perspective can buy the stock at current levels.
Since taking support at ₹67 in October 2018, the stock has been in an intermediate-term uptrend. Medium- as well as short-term trend are up for the stock. After a minor corrective decline, the stock found support at ₹92 and resumed its uptrend. The stock decisively breached its 21-day moving average recently and continued to trend upwards.
It hovers well above the 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the positive territory. Moreover, the daily price rate of change indicator has re-entered the positive terrain and the weekly price rate of change continue to feature in this terrain implying buying interest.
The short-term outlook is bullish for the stock. It can continue to trend upward and reach the price targets of ₹104 and ₹106 in the upcoming trading sessions. Traders can buy with a stop-loss at ₹98.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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