Indian Bank (₹315.8)

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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