City Union Bank

We recommend a buy in City Union Bank from a short-term perspective. It is apparent from the charts that the stock has been on an intermediate-term uptrend since its March low of Rs 11.1, forming higher peaks and troughs. In late August, the stock crossed over its 21- and 50-day moving averages and is trading well above these averages. The stock surpassed its key medium-term resistance at Rs 28 on September 25, by surging 3 per cent with high volumes. We notice an increase in volume during the advance days over the past one month. The daily as well as weekly relative strength indices (RSI) are featuring in the bullish zone. Besides, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Considering that the intermediate-term uptrend-line of the stock is intact, we are bullish from a short-term perspective. We anticipate it to move up until it hits our price target of Rs 32.5. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 27.8.