Technical Analysis

Indian Bank (₹276.4): Buy

Yoganand D BL Research Bureau | Updated on March 28, 2019 Published on March 29, 2019

Investors with a short-term perspective can buy the stock of Indian Bank at current levels. The stock gained 4.5 per cent to close above a key resistance at ₹270 on Thursday.

Since taking support at ₹200 in early February, the stock has been in a short-term uptrend. While trending up, the stock has conclusively breached its 21- and 50-day moving averages in late February. After a minor corrective decline, the stock found support at ₹252 recently and bounced strongly. With the recent rally, the stock appears to have resumed the short-term uptrend.

The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Both the daily and the weekly price rate of change indicators are hovering in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹288 and ₹293 in the upcoming sessions. Traders can buy the stock with a stop-loss at ₹270.5 levels.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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