Todays Pick

City Union Bank (₹157.6): Buy

Yoganand D BL Research Bureau | Updated on November 03, 2020 Published on November 04, 2020

Investors with a short-term perspective can buy the stock of City Union Bank (CUB) at current levels. After a sharp fall in March, the stock registered a 52-week low at ₹110.

Subsequently, the stock started to trend upwards. Bu,t it had failed to surpass the key resistance at ₹145 in early June. Thereafter the stock took support in the band between ₹110 and ₹115 in early August. Since then, the stock has been in a medium term uptrend. On Tuesday, the stock gained 3.4 per cent with good volume, decisively breaching a key resistance at around ₹153 and 200-day moving average.

Moreover, the stock trades 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 is likely to enter the bullish zone from the neutral region to the bullish zone. Over the past two trading sessions the stock has gained 5.5 per cent on BSE.

Short-term outlook is bullish and the stock has potential to reach the targets of ₹164 and ₹168 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹154 levels.

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

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Published on November 04, 2020
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