Beruflich Dokumente
Kultur Dokumente
Retail Research
Stock
IDBI
CMP
88.5
Recommended Action**
Buy between 85 and 88.5
mentum stocks
Target
102
Stop Loss*
82
Time Horizon
1-2 Weeks
* Stoploss as per daily closing basis. **= Recommended to stagger buying rather than entering entirely at CMP
Current Observation:
After correcting from a high of 95.45 recently, IDBI found support at the lower end of its current trading range which is at 81. The stock
broke out of a 81-84 narrow trading range on Thursday on the back of above average volumes.
The higher than average volumes and the faster retracement of the recent fall suggests that the bulls are more dominant at the moment.
Technical indicators are currently giving positive signals as the stock trades above the short term (13 day SMA) and medium term (50 day
SMA) moving averages. Momentum indicators like the 14-week RSI are in rising mode and not yet overbought, which is a positive signal
for the stock.
The Relative Strength Comparative indicator too is in rising mode, which implies that the stock is currently outperforming the Nifty index,
and is therefore likely to rise more than the index in the near term.
Given the positive technical set up, we believe the stock is on the verge of resuming the next leg of its underlying uptrend. The upside
momentum is likely to accelerate once the stock crosses its immediate resistances of 95.45. Our entry levels and targets have been
mentioned above.
RETAIL RESEARCH
RETAIL RESEARCH