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IDBI Bank Technical Analysis #51: Sell | Target Rs 28 | Arijit Banerjee

OUR RECOMMENDATION

CMP#34.45
IdeaSELL
Sell Range37 – 34
Target28 – 27
StopLoss*40
Duration40 – 60 Trading Sessions
Potential Return^19 – 22%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
34.45SELL37 – 3428 – 274040 – 60 Trading Sessions19 – 22%

# CMP on May 13, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 31.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

IDBI Bank provides banking and financial solutions to retail and corporate clients in India. The company also offers fund based assistance, including working capital, term loans, project finance etc. Founded in 1964, the company operated 1892 branches and 3700 ATMs as of March 2019. IDBI Bank Limited is a subsidiary of LIC India.

Stock Data
NSE CodeIDBI
Sectoral IndexNIFTY BANK
52W High68.1
52W Low34.25
Face Value10
Relative Performance_IDBI vs Nifty Bank Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • The stock has remained in the corrective phase over the last 5 years.
  • Recently the stock has made Breakout below the true crucial downward Weekly support, around 40.
  • Such an important downside breakout suggests further price falling in future.
IDBI Weekly Chart
IDBI Bank Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock moves in the Consolidation phase since last 4 months and gave a breakout on the daily chart.
  • Momentum oscillator like 12 period MACD is showing negative signal and now placed at bearish zone. This could be an indication of downside momentum in stock price.
IDBI Daily Chart
IDBI Bank Daily Chart

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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