Todays Pick

Equitas Small Finance Bank (₹61.2): Buy

Yoganand D | Updated on March 23, 2021

BL Research Bureau

The stock of Equitas Small Finance Bank has been in a medium-term uptrend, forming higher peaks and higher troughs since its listing in early November 2020. After recording a 52-week high at ₹68 in early March this year, the stock started to witness a corrective decline until it found support at ₹52.3 in the past week. The 21-day moving average also cushioned the stock recently. Subsequently, the stock continued to trend upwards and appears to have resumed the medium as well as the short-term uptrends. On Tuesday, the stock gained 5.5 per cent accompanied by above average volume, breaking above a key immediate resistance at ₹58. There has been an increase in volume over the past three trading sessions.

The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone. Besides, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain. Both the medium and short-term uptrends are intact. Short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets ₹64 and ₹65 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹59.5 levels.

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

Published on March 24, 2021

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