Technical Analysis

Indian Bank (₹315.8)

Gurumurthy K BL Research Bureau | Updated on February 19, 2018 Published on February 19, 2018

The outlook for the stock of Indian Bank is bearish. The bounce back move that was in place from the low of ₹313.4 halted last week at a high of ₹364.2 and the stock has been falling continuously since then. The stock tumbled 6.2 per cent on Monday. This sharp fall had dragged the stock decisively below the 200-day moving average currently poised at ₹330. This suggests that the downtrend that has been in place since January is intact and has resumed.

The 200-DMA will now act as a strong resistance and will cap the upside in the coming days. Intermediate bounce to this level may find fresh sellers coming into the market. A fall to ₹285 is likely in the coming days.

Traders can go short at current levels and also on rallies at ₹325. Stop-loss can be placed at ₹330 for the target of ₹285. Revise the stop-loss lower to ₹308 as soon as the stock moves down to ₹302. The outlook for the stock will turn positive only if it breaks above ₹330 decisively. But such a strong bounce looks unlikely at the moment.

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

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