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Investors with a short-term perspective can buy the stock of Indian Bank at current levels. The stock jumped 6 per cent with above average volume on Tuesday, breaking above a significant long-term resistance at ₹330 as well as its 200-day moving average. Following a medium-term downtrend, the stock found support in the band between ₹270 and ₹280 in early March this year.
Subsequently, the stock changed direction and has been in a short-term uptrend since then. After testing the key resistance at ₹330 in early April, the witnessed a corrective decline. This time the stock managed to decisively breakthrough the key resistance at ₹330 with good volume. The stock trades well above its 50 and 200-day moving averages.
The daily relative strength index has entered the bullish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest. Short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹355 and ₹360 levels in the coming days. Traders can buy with a stop-loss at ₹334. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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