Technical Analysis

Max Financial Services (₹535.7): Buy

Yoganand D BL Research Bureau | Updated on June 25, 2020 Published on June 26, 2020

The stock of Max Financial Services jumped 6 per cent accompanied by above average volume on Thursday, conclusively breaking above the key long-term resistances at ₹500 and ₹520. This rally provides investors with a short-term perspective an opportunity to buy the stock at current levels. Since recording a 52-week low at ₹279 in late March this year, the stock has been in a medium-term uptrend. Short-term trend is also up for the stock.

While trending up, the stock had decisively breached its 50- and 200-day moving averages in late May and trades well above these moving averages. With the breach of key resistance at ₹520, the stock had strengthened its medium-term uptrend. There has been an increase in daily volume over the past one month.

The daily relative strength index features in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹557 and ₹565 in the ensuing trading sessions. Traders can buy with a stop-loss at ₹525 levels.

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

Published on June 26, 2020
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