Federal Bank (₹118.9)

Investors with a short-term perspective can consider buying the stock of Federal Bank at current levels. The stock has advanced 3 per cent with extraordinary volume on Thursday, resuming its medium-term uptrend. Following a strong breakthrough of the key resistance level of ₹100 in late April, the stock began to consolidate sideways in the range between ₹105 and ₹122 thereafter. Recently, the stock took support from the medium-term up trend-line at around ₹113 and started to move higher breaching its 21 and 50-day moving averages.

There has been an increase in daily volume over the past five trading sessions. The daily relative strength index has entered the bullish zone from the neutral region while the weekly RSI continues to hover in the bullish zone. Both the daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

The medium-term uptrend for the stock is intact. It can continue to trend upwards and reach the price targets of ₹124 and ₹126 in the upcoming trading sessions. Buy the stock with a stop-loss at ₹116.5.

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

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