Todays Pick

RBL Bank (₹250.7): Buy

Yoganand D BL Research Bureau | Updated on January 05, 2021

Investors with a short-term perspective can buy the stock of RBL Bank. The stock gained 4.6 per cent accompanied by extraordinary volume on Tuesday, breaking above a key resistance at ₹243. In late September 2020, the stock took support at ₹156 and began to trend upwards.

While trending up, the stock surpassed a key resistance at ₹200 in early November. After encountering a key resistance at ₹243 in early December, the stock witnessed a corrective decline but took support at ₹200 in late December and bounced. Over the past two trading sessions, it has surged 8.3 per cent with good volume. Also, it trades well above the 21- and 50-day moving averages. The daily relative strength index features in the bullish zone and the weekly RSI has also entered the bullish zone. Moreover, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain.

The short-term outlook is bullish. It has potential to reach ₹261 and ₹266. Traders with short-term perspective can buy the stock at ₹245.

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

Published on January 06, 2021

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