Technical Analysis

Consider going long on IndusInd Bank

KS Badri Narayanan | Updated on April 21, 2019 Published on April 21, 2019

The outlook for IndusInd Bank (₹1,764.30) remains positive. The stock finds immediate support at ₹1,683 and a crucial one at ₹1,514.60. IndusInd Bank finds immediate resistance at ₹1,828 and a major one at ₹1,932. A rally above this level can trigger a fresh up-move in the stock that has the potential to take the stock to new heights.

F&O pointers: IndusInd Bank futures witnessed a healthy rollover of 15.7 per cent to the May series. Most of the rollover appears to be on the long side. Trading in options indicates that the stock could move in the ₹1,800-1,700 range.

 

IndusInd Bank May 1,800 call, too, has turned active, signalling a positive bias for the next month series. However, except for that call, options of the May series are yet to gain traders’ interest.

Strategy: Traders could consider going long on IndusInd Bank May futures. Stop-loss can be placed at ₹1,680 for an initial target of ₹1,830 for short-term traders and ₹1,930 for slightly medium-range investors with a higher risk appetite. Stop-loss can be shifted to ₹1,750 if the stock closes above that level. Traders could even consider rolling over the position for better returns.

Follow-up: Stop-loss would have triggered for the Bharti Airtel option.

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