Technical Analysis

Indian Bank (₹117.5): Buy

Yoganand D BL Research Bureau | Updated on October 17, 2019 Published on October 18, 2019

Investor with a contrarian view can buy the stock of Indian Bank at current levels. The stock jumped 7.8 accompanied by above average volume taking support in the band between ₹105 and ₹110. Both medium as well as short-term trends are down.

The stock breached key supports at ₹175 and ₹135 in the month of September. But, the significant long-term support in the band between ₹100 and ₹110 provided base this week.

The stock marked a 52-week low of ₹105 on Monday and began to move upwards triggered by positive divergence in the daily price rate of change indicator.

The daily as well as weekly relative strength indices are recovering from the oversold territory implying potential room for upside. The daily price rate of change indicator is on the brink of entering the positive territory implying buying interest. There has been an increase in daily volume over the past two trading sessions.

Trader with a short-term horizon and contrarian view can buy the stock with a stop-loss at ₹115. Short-term targets are ₹122.5 and ₹125.

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

Published on October 18, 2019
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