We recommend a buy in Federal Bank from a short-term horizon. It is apparent from the charts that the stock has been on a medium-term uptrend from its July trough of Rs 163. However, after encountering minor resistance at around Rs 230 recently, the stock declined and found support at Rs 200 level. The stock's 5 percent gain with above average volume on September 19 reinforced the bullish momentum.
Federal Bank is currently trading well above its 21 and 50-day moving averages. The relative strength index is rising in the neutral region towards the bullish zone. The moving average convergence and divergence is featuring in the positive territory. Our short-term outlook for the stock is positive. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 208. We expect the stock to surpass the minor resistance and move up until it hits our price target of Rs 242 in the forthcoming trading sessions.
Federal Bank is currently trading well above its 21 and 50-day moving averages. The relative strength index is rising in the neutral region towards the bullish zone. The moving average convergence and divergence is featuring in the positive territory. Our short-term outlook for the stock is positive. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 208. We expect the stock to surpass the minor resistance and move up until it hits our price target of Rs 242 in the forthcoming trading sessions.
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