This stock is an outlier among banking stocks, which have otherwise been on a decline in recent times. It is in an uptrend across all time frames.
However, in early March 2015, the stock encountered a resistance at around Rs.103 and started to move sideways in a narrow range between Rs.93 and Rs.103. Now, the stock tests the upper boundary.
The indicators in the daily and weekly chart are not conducive for a breach of the upper boundary. There is more probability of a downward reversal from this resistance.
In that case, testing the lower boundary can’t be ruled out in the short term.
Hence, you can consider booking profits at the current juncture and exiting the stock, and re-entering at lower levels.
Further decline below the support level of Rs.93 can pull the stock down to Rs.87 and then to Rs.80 in the short to medium term. Only a strong rally above Rs.103 can push the stock higher to Rs.110.
However, in early March 2015, the stock encountered a resistance at around Rs.103 and started to move sideways in a narrow range between Rs.93 and Rs.103. Now, the stock tests the upper boundary.
The indicators in the daily and weekly chart are not conducive for a breach of the upper boundary. There is more probability of a downward reversal from this resistance.
In that case, testing the lower boundary can’t be ruled out in the short term.
Hence, you can consider booking profits at the current juncture and exiting the stock, and re-entering at lower levels.
Further decline below the support level of Rs.93 can pull the stock down to Rs.87 and then to Rs.80 in the short to medium term. Only a strong rally above Rs.103 can push the stock higher to Rs.110.
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