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Federal Bank Technical Analysis #70: Sell | Target Rs 95 | Arijit Banerjee

CMP#103.15
IdeaSELL
Sell Range105 – 102
Target95 – 92
StopLoss*108.75
Duration15 – 20 Trading Sessions
Potential Return^8 – 11%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
103.15SELL105 – 10295 – 92108.7515 – 20 Trading Sessions8 – 11%

# CMP on July 17, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 99.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Federal Bank is an Indian commercial bank operates through four segments: Treasury, Corporate Banking, Retail Banking and other banking operations. The company offers savings accounts, current accounts, demat accounts, salary accounts, gilt accounts, NRI deposit accounts, fixed deposits and different loan schemes like education loan, car loan, home loan, gold loan etc. The company also provides health, life and other insurance products, mutual funds, National pension system etc.

Stock Data
NSE CodeFEDERALBNK
Sectoral IndexNifty Bank
52W High110.4
52W Low67.05
Face Value2
Relative Performance_Federal Bank vs Nifty Bank Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Rising wedge formation since January 2019. 
  • Currently, we are witnessing a downside breakout from the Rising Wedge pattern on the weekly chart, which is a negative sign for the stock.
Federal Bank Weekly Chart
Federal Bank Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Recent closing below the Lower Bollinger Band showing further downside movement.
  • Volume has expanded sharply during price fall.
Federal Bank Daily Chart
Federal Bank Daily Chart

CONCLUSION - Federal Bank SHARE PRICE FORECAST

Based on our positional trading tips for share market, Federal Bank share price target will be 95 – 92 in the next few days.

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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