Karur Vysya Bank (₹107.1): Buy
Investors with a short-term perspective can buy the stock of Karur Vysya Bank at current levels. On Wednesday, the stock gained 6.8 per cent backed with good volume, conclusively breaching its 21- and 50-day moving averages. This rally has strengthened the bullish momentum in the stock.
Since early March, the stock has been in a sideways consolidation phase in the band between ₹95 and ₹110. Taking support at around ₹95 in the previous week, the stock began to move higher. Moreover, the stock has also breached a key resistance at ₹105.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. Further, daily as well as weekly price rate of change indicators are hovering in the positive terrain indicating buying interest.
There has been an increase in daily volume over the past one week. With the bullish momentum, the stock has the potential to break through the upper boundary at ₹110 and reach the price targets of ₹111.5 and ₹114 in the short term. Traders can buy the stock with a stop-loss at ₹104.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)