DCB Bank (₹183.7)

Investors with a short-term horizon can consider buying the stock of DCB Bank at current levels. After registering a new high at ₹213 in mid- June, the stock changed direction and started to decline. It witnessed a sharp fall in early August. However, significant medium-term support at around ₹170 halted the stock’s downtrend. Since then, the stock has been consolidating sideways in the wide range between ₹170 and ₹194.

The stock consistently took support at around lower boundary and reversed higher. On Thursday, the stock surged 3 per cent with good volume breaching an immediate resistance as well as the 200-day moving average at ₹180 levels. The stock has the potential to extend the rally and test the upper boundary in the short term.

The daily price rate of change indicator has entered the positive territory from the negative territory implying buying interest. The weekly price ROC is likely to enter the positive territory. Both the daily and weekly relative strength indices are charting higher in the neutral region. The short-term outlook is bullish for the stock. It can continue to trend higher and reach the price targets of ₹191 and ₹195. Buy the stock with a stop-loss at ₹179.5.

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

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