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Indian Bank Technical Analysis #63: Sell | Target Rs 240 | Arijit Banerjee

OUR RECOMMENDATION

CMP#252.95
IdeaSELL
Sell Range262 – 252
Target240 – 235
StopLoss*270
Duration15 – 20 Trading Sessions
Potential Return^5 – 7%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
252.95SELL262 – 252240 – 23527015 – 20 Trading Sessions5 – 7%

# CMP on June 19, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 246.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Indian Bank is a provider of various banking products and services such as savings and current accounts, term deposits, NRI accounts etc. It also offers agriculture, group, personal/individual, micro, small enterprise, education loans etc. As of March 31, 2019, the Bank has 2872 branches and 2849 ATMs across the country.

Stock Data
NSE CodeINDIANB
Sectoral IndexNifty Bank
52W High379.7
52W Low200
Face Value10
Relative Performance_Indian Bank vs Nifty Bank Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • The share price of Indian Bank moved in a triangle pattern from October 2018 till July 2019 as highlighted in the adjoining chart.
  • In October 2019, the stock has made a decisive breakout from the symmetrical triangle pattern and since then the price started trading in an upward rising consolidation range.
  • In this range trading, we can sell once the price started falling from resistance with a target point at the support line of the consolidation range.
Indian Bank Weekly Chart
Indian Bank Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • We are witnessing the formation of Lower Highs Lower Lows on daily chart.
  • Last few days stock is trading below the 15 days MA.
  • Recent closing below the Lower Bollinger Band suggests further downside movement.
Indian Bank Daily Chart
Indian 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

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

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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