Technical analysts at ICICI Direct have picked Bandhan Bank as their momentum pick, predicting a target price of Rs 338 per share in a 14-day time period.
The more closely a company interacts with individual American consumers, the more pressing are matters of Covid-19 restrictions.
So far this month, the benchmark Nifty 50 has jumped over 3% in just three trading sessions and by the looks of it, it might continue adding to the gains today. Now that the Nifty has crossed the 12,000-mark yet again, analysts are eyeing the crucial resistance level of 12,050 and whether the index closes above it today or not. Technically, Nifty’s short-term trend is positive right now with support being placed at 11,600 and resistance at 12,400 which is ICICI Direct’s December target for the index. Chartists are also spotting positive trends for several stocks that could help investors pocket healthy gains in a short span of time.
Technical analysts at ICICI Direct have picked Bandhan Bank as their momentum pick, predicting a target price of Rs 338 per share in a 14-day time period. “The stock has generated a breakout above the falling channel containing the last one months breather signalling reversal of the corrective trend and resumption of up move thus offers fresh entry opportunity,” they said in a report. Bandhan Bank share price has had a price breakout above falling channel signalling resumption of the up move.
Shares of the private sector bank have already taken 17 sessions to retrace just 61.8% of the previous 11 sessions up move. According to ICICI Direct, a slower retracement of previous up move signals a higher base formation and positive price structure. “The stock has immediate support at Rs 294-295 levels as it is the confluence of the current week low and the 50% retracement of the current up move placed at Rs 295 levels,” they added.
Bandhan Bank currently trades at Rs 313 per share. Analysts said that the daily 14 periods RSI has generated a buy signal for Bandhan Bank, moving above its nine periods average thus supports the positive bias. “Based on the above technical observations, we expect the stock to continue with its current up move and head towards Rs 338 levels in the coming sessions as it is the 123.6% external retracement of the recent breather (Rs 332-279) placed at Rs 342 levels,” ICICI Direct noted. A stop loss of Rs 294 has been suggested.
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