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The stock of Allahabad Bank (₹49.9) has been in the limelight over the past two weeks and has surged 9 per cent in the previous week witnessing buying interest.
Investors with a medium-term perspective and with a high-risk appetite can buy the stock. On Friday, the stock jumped 4 per cent with good volume decisively breaching a key immediate resistance at ₹48.5.
Moreover, the strong rally in the last week has emphatically surpassed the moving average compression (21-, 50- and 200-day moving averages) at around ₹43.
Also, the stock hovers well above the 50- and 200-day moving averages. Since taking support at the 52-week low of ₹33.25 in October 2018, the stock has been in an intermediate-term uptrend.
Furthermore, it has been in a short-term uptrend since early February this year. There has been an increase in daily volume since early February.
The daily relative strength index has entered the bullish zone from the neutral region and similarly the weekly RSI has also entered the bullish zone supporting the on-going bullish momentum.
Besides, the daily as well as weekly price rate of change indicators feature in the positive territory signifying buying interest.
The medium-term outlook is bullish for Allahabad Bank.
The progressing uptrend can extend and the stock has potential to trend upwards and reach the price targets of ₹55 and ₹60 in the upcoming trading sessions with a small pause at ₹55.
Investors with a medium-term perspective can buy the stock with a stop-loss at ₹44.5 levels.
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