Technical Analysis

Tech Query: Outlook for Max Healthcare Institute and Ujjivan SFB shares

Yoganand D BL Research Bureau | Updated on May 16, 2021

What is the outlook for the stocks of Max Healthcare Institute and Ujjivan Small Finance?

Kunal Dilip Joshi

Max Healthcare Institute (₹220.1): Since listing in August 2020, the stock of Max Healthcare Institute has been in an intermediate-term uptrend. In early April this year, the stock breached a key resistance at ₹206 and extended the up-move. Nevertheless, it met with a resistance at ₹240 and started to move sideways. The level of ₹240 began to act as a significant resistance and limited the upside. The stock has registered a 52-week high at ₹241.9 on April 20. The daily as well as the weekly relative strength indices are displaying negative divergence, implying trend reversal is on the cards.

Moreover, there is formation of a bearish engulfing candlestick pattern, implying short-term trend reversal. The stock fell 3 per cent accompanied by above-average volume in the past week. The daily RSI has entered the neutral region from the bullish zone.

The stock now tests support at current level of ₹220. A fall below this level can pull it lower to ₹206 and then to ₹200. You can consider booking partial profits at current juncture. A strong fall below the key support level of ₹200 will alter the short-term uptrend that began from the late February low of ₹178 levels. Next supports below ₹200 are placed at ₹190 and ₹180. Supports thereafter to watch are pegged at ₹160 and ₹140 levels. On the upside, a strong breakthrough of ₹240 will bring back bullish momentum and take the stock northwards to ₹260 levels.

Ujjivan Small Finance Bank (₹29.7): The stock of Ujjivan Small Finance Bank met with a key hurdle at ₹44 in early January this year and started to trend downwards. Since then, it has been in a medium-term downtrend. Short-term trend is also down for the stock. However, it took support at ₹26.7 in late April and began to move higher. But the stock now faces a key resistance ahead at ₹32. A rally above this level can take it higher to ₹36.

A conclusive break-out of the vital resistance at ₹36 is required to alter the downtrend and take the stock higher to ₹40. Next resistances are placed at ₹44 and ₹50. A strong breakthrough of the key level of ₹50 will provide a long-term target of ₹60. On the upside, failure to move beyond the resistance level of ₹32 will keep the downtrend intact and pull the stock down to the base level of ₹26.7. Thereafter the stock can test supports at ₹25 and ₹23 in the medium term.

Published on May 16, 2021

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