Investors with a short-term perspective can buy the stock of Kotak Mahindra Bank as the price action hints at resumption of the bull trend after undergoing a correction during the past couple of weeks.

The stock has been in a long-term uptrend and hence the recent correction can be used as an opportunity to buy. After registering lifetime high at ₹1,734.8 in mid-December, the stock witnessed a moderation to the support at ₹1,640. At this level lies the 50-DMA, making the support stronger. Thus, the stock has bounced from that level and formed a hammer candlestick pattern on Monday, indicating a bullish reversal.

Corroborating the bullish outlook, the daily RSI is showing a fresh uptick and has crossed above the midpoint level of 50. Also, the moving average convergence divergence indicator on the daily chart indicates signs of recovery.

Thus, investors can make use of declines to initiate fresh long positions with stop-loss at ₹1,635. The near-term target can be at ₹1,730.

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