RBL Bank (₹522.7): Buy

Yoganand D | | Updated on: Dec 06, 2021

Investors with a short-term perspective can buy the stock of RBL Bank at current levels.

Taking support at around ₹500, the stock surged 2 per cent accompanied with an above average volume on Monday. The stock has formed a piercing line pattern in the daily candlestick chart — a bullish reversal pattern. Moreover, the daily relative strength index is displaying positive divergence, implying that a trend reversal is on the cards. Following a short-term downtrend from the new high of ₹652, the stock found support at a key long-term base at ₹500 on Monday.

The daily RSI is recovering from the oversold territory and is heading towards the neutral region from the bearish zone. There has been an increase in daily volume over the past one week. Taking a contrarian stance, the short-term outlook is bullish for the stock and it can extend its current rally in the coming trading sessions.

Traders can buy the stock at current levels while maintaining a fixed stop-loss at ₹510. A decisive rally above the immediate resistance at ₹530 can push the stock northwards to the short-term price targets of ₹540 and ₹555 in the ensuing trading sessions.

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

 

Published on October 02, 2018
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