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Investors with a short-term horizon can buy the stock of DCB Bank at current levels. Since taking support at ₹140 in October 2018, the stock has been in an intermediate-term uptrend.
While trending up, the stock had decisively breached a key long-term resistance at ₹160 last December. Following a short-term corrective decline, the stock found support at ₹171 in mid-February this year and resumed its upmove. The 50-day moving average also cushioned the stock at this base level.
On Monday, the stock jumped 5.8 per cent decisively breaking above a key resistance at ₹180. Amid volatility, the stock closed above this resistance on Tuesday. There has been an increase in daily volume over the past two trading sessions. The daily relative strength index features in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Besides, the daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest.
The short-term outlook is bullish. The stock can extend the uptrend and reach the price targets of ₹190.5 and ₹194.5 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹179.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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