Karur Vysya Bank (₹134)

Investors with a short-term perspective can consider buying the stock of Karur Vysya Bank at current levels. Since taking support at around ₹80 in December 2016, the stock has been on a long-term uptrend. While trending up, the stock has emphatically breached above a key long-term resistance level of ₹120 in early June. Though the stock had encountered resistance at ₹130 last week, it broke this hurdle decisively by gaining 3.6 per cent with above average volume on Tuesday. Moreover, on that session, the stock has recorded a new 52-week high of ₹134.4. This has strengthened the stock’s short-term uptrend.

The daily as well as the weekly relative strength indices are featuring in the bullish zone. Further, buying interest is seen as the daily and weekly price rate of change indicators hover in the positive territory. Both the medium and short-term trends are also up for the stock It can extend its uptrend and reach the price targets of ₹139 and ₹141.5 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹130.5.

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

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