Syndicate Bank

We recommend a buy of Syndicate Bank’s stocks from a short-term trading perspective. It is evident from the charts that after encountering resistance around Rs 70 in early January, the stock began to trend downward. This downtrend accelerated in late February and the stock witnessed a sharp fall penetrating the key support level at Rs 48.5. It finally halted at Rs 37.6 that is also its 52-week low. The stock reversed direction forming a bullish reversal candlestick pattern, namely bullish harami candlestick pattern.

Subsequently, the stock gained 8 per cent on March 16. This trend reversal has been backed by positive divergence in the daily relative strength index (RSI), which recovered from oversold region. We are bullish on the stock from a short-term perspective.We expect the current rally to continue until it hits our price target of Rs 48.5 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 41.50.