Indian Bank

We recommend a buy in Indian Bank stock from a short-term perspective. It is evident from the charts of the stock that it has been on an intermediate-term up trend from its March low of Rs 63. In mid-September, it conclusively broke out of a significant resistance level of Rs 150 and later on recorded a 52-week high at Rs 195 on October 20. However, following a minor pull-back the stock found twin support around Rs 150 (a key support level and intermediate-term up trendline) and bounced up. On 23rd November, the stock gained 4 per cent with above average volume penetrating its 21 and 50-day moving averages. The daily relative strength index is heading towards the bullish zone from the neutral region and weekly RSI is on the verge of entering the bullish zone. The daily moving average convergence and divergence indicator has signalled a buy and is re-entering the positive territory. We are bullish on the stock from a short-term perspective. We expect it to rally further until it hits our price target of Rs 189 in the upcoming trading sessions. Traders with a short-term horizon can buy the stock, maintaining a stop-loss at Rs 162.

via BL