This has been one of the retail favourite stocks
but has failed to live up to the expectations over the past four years. However, the tide seems to have turned upwards for this marquee name now. The prices stabilized around 200-SMA on monthly chart during the March month fiasco. In the following months, we witnessed a good base building in the stock and finally, it has managed to come out of its slumber. On the daily chart, we can see a good price-volume breakout from multiple resistances and on the larger (Monthly) time frame, ‘1-2-3’ pattern is clearly visible. Traders are advised to buy on a decline towards 228 – 225 for a target of Rs 250 in coming sessions. The stop loss can be placed at Rs 215.
The banking space has given a stupendous move since the budget day. Undoubtedly, the broader degree trend remains strongly bullish; but since the move was extremely swift, prices have entered an overbought territory. On February 5, we witnessed some signs of profit booking in this stock and the way its hourly charts are shaped up, further corrective move cannot be ruled out. However, the correction will not be big and at lower levels, we are likely to see buying emerging in this stock. Hence, only aggressive traders should look to sell with a strict stop loss. One can look to sell on a bounce towards 620 – 624 for a target of Rs 585 in coming days. The strict stop loss can be placed at Rs 637
Disclaimer: Sameet Chavan is Chief Analyst- Technical & Derivatives at Angel Broking. The analyst may have positions in one or more stocks. Views are personal.
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