ING Vysya Bank

We recommend a buy in ING Vysya Bank from a short-term horizon. It is apparent from the charts that its medium-term downtrend, which commenced from September high of Rs 275, found support at Rs 113 that was almost the stock’s 52-week low. It reversed direction from here triggered by bullish divergence in the daily relative strength index (RSI). Since then the stock has been on a short-term up trend. The stock breached its medium-term downtrend line as well as 21-day moving average recently. Moreover, on December 10, the stock gained 8 per cent, reinforcing its bullish momentum. The daily RSI is likely to enter the bullish zone from the neutral region and weekly RSI is on the verge of entering the neutral region from the bearish zone. The significant resistance for the stock is at Rs 200. Our short-term outlook for the stock is bullish. We expect the stock’s up move to continue until it hits our price target of Rs 170 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 147.

via BL