Published April 17, 2019
Nifty 50 (NIFTY) developed positively on Tuesday, and gained 0.83 per cent to a close of 11787 points. The index thereby broke the previous record from August 2018 and set a new all time high. The index has now closed up for the fourth day in a row.
We bring you a banking stock that has the potential to rise around 20 per cent or more in the medium term (one to six months).
The South Indian Bank (SOUTHBANK.NS) Close: 17.60
The South Indian Bank has broken out of the falling trend channel in the medium term chart. It has given a price breakout from a double bottom formation both in the medium and long term charts and is now above its resistance of 16.80 rupees. Further rise to 20.85 or more is signalled.
Momentum is strong in the stock as indicated by the RSI curve. Positive volume balance indicates that the stock has been rising with rising volume as the buyers favour the stock, while it corrects with lower participation.
The stock has support around 16.80 - 15.90 and 12.80 levels, while resistance is around 22.60 rupees or equivalent to 28 per cent higher from yesterday's close. The stock is overall assessed as technically positive in the short to medium term.
Recommendation one to six months: Positive
The analyses are based on closing price as per April 16, 2019. Maintaining proper stop loss is always recommended.
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The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.
Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.