Technical Analysis

Indian Bank (₹257.9): Buy

Yoganand D BL Research Bureau | Updated on January 08, 2019 Published on January 08, 2019

Investors with a short-term perspective can buy the stock of Indian Bank at current levels. Following a medium-term downtrend, the stock found support at ₹111 in late October 2018. Since then, the stock has been on a sideways consolidation phase with a positive bias. The stock took support at ₹111 in early December and bounced up strongly. Since then, it has been on a short-term uptrend. While trending up, the stock decisively breached its 21- and 50-day moving averages and hovers well above them.

On Tuesday, the stock conclusively broke through the key resistance at ₹250 by gaining 4.5 per cent. Moreover, there has been an increase in daily volume over the past one week. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive terrain implying buying interest.

The short-term outlook is bullish for the stock and it can continue to trend upwards moving out of the sideways range. Targets are ₹269 and ₹274. Traders can buy with a stop-loss at ₹252.

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

Published on January 08, 2019
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