Technical Analysis

Technical call: Buy Federal Bank (₹104)

Gurumurthy K BL Research Bureau | Updated on October 23, 2021


The outlook for the stock of Federal Bank is bullish. The stock has surged about 22 per cent over the last two weeks. This strong rally has taken the stock well above the key hurdles at ₹88 – a key trendline – and ₹92.5, the 61.8 per cent Fibonacci retracement resistance. It also confirms the reversal of the downtrend that was in place since October 2017. Additionally, an inverted head and shoulder pattern on the chart strengthens the case of a trend reversal.

Supports for the stock will now be at ₹92, ₹87 and ₹83. The stock can surge to ₹122-₹125 in the coming weeks. From a long-term perspective, the stock has potential to reach ₹162 in the coming months. Investors with a medium to long-term perspective can buy the stock at the current levels. Accumulate on dips at ₹94 and ₹88. Keep a stop-loss at ₹77.

Book profits at ₹158. Trail the stop-loss up to ₹112 as soon as the stock moves up to ₹127. Move the stop-loss further up to ₹132 as soon as the stock moves up to ₹148.


Published on October 23, 2021

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