Vijaya Bank

We recommend a buy on Vijaya Bank stock from a short-term trading perspective. It is apparent from the charts of Vijaya Bank that it was on medium-term downtrend from its January high of Rs 39.3 to its March low of Rs 20. The stock had lost almost 50 per cent of its value from this peak. However, the stock found support in the range of Rs 20 to Rs 20.50 recently and reversed direction. The stock has been on a short-term uptrend from this support zone. The stock conclusively penetrated its medium-term down trendline by gaining 3 per cent on March 23, confirming end of the medium-term downtrend. The daily relative strength index has entered the neutral region from the bearish zone. We notice a buy signal in daily moving average convergence and divergence indicator. From a short-term perspective we are bullish on the stock. We expect its short-term uptrend to continue until it hits our price target of Rs 26 in the forthcoming sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 22.

via BL