Technical Analysis

Sizzling Stocks - Dena Bank (Rs 89.5)

Yoganand D. | Updated on February 11, 2012 Published on February 11, 2012

Ever since marking a 52-week low at Rs 47.5 on January 2, the stock has been on a steady medium-term uptrend. Following the announcement of its December quarter results, the stock broke out of significant resistance at Rs 72 and accelerated. It went up by 21.8 per cent backed with extraordinary volumes last week. But, it is now facing resistance in the band between Rs 90 and Rs 93. Further, it has breached the upper boundary of the Bollinger Bands implying that is could be overbought. Besides, its daily RSI is hovering in the overbought territory.

A downward reversal from the aforesaid resistance zone will pull the stock down to Rs 80 and then to Rs 72 in the short-term. Only a strong decline below Rs 65 will mar the bullish medium-term view and drag the stock down to Rs 58 or Rs 50 in the medium-term.

On the upside, an emphatic jump above Rs 93 will pave way for a rally to Rs 100 and then to Rs 110 in the months ahead.

India Infoline (Rs 67.9)

The stock changed its direction in early January 2012, after taking support just above its long-term base level of Rs 40. It has been on a nascent medium-term uptrend. Last week, the stock zoomed 19 per cent with unusual volumes. Nevertheless, the stock is currently testing significant long-term resistance at Rs 70. Moreover, its 200-day moving average is poised at Rs 70, acting as a hurdle for the stock. A conclusive break through of the current resistance can accelerate the stock to Rs 78 and then to Rs 84 in the medium-term.

A fall below the immediate support level at Rs 62 will pull the stock down to Rs 56 or Rs 51 in the medium-term.

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