This Financial midcap stock registered a cup and handle breakout! Soars 4% despite weakness in the market!

This Financial midcap stock registered a cup and handle breakout! Soars 4% despite weakness in the market!

Indian Market
by 5paisa Research Team Last Updated: 2022-10-12T12:01:42+05:30

IDFC has jumped over 4% amid strong buying interest despite weakness in the market.   

The Indian indices continued their bearish run on Wednesday, as broad-based sell-off is seen across major indices during the initial hours of the trading session. However, quality names have seen massive buying from the HNIs/ institutions as stock specific action continued on D-street. The stock of IDFC (NSE Code: IDFC) has soared nearly 5% supported by massive volume on Wednesday. Interestingly, it has registered a strong price volume breakout from its 27-week cup & handle pattern. Such breakout is considered very positive for medium term, and the stock has the potential to test higher levels. With this, it has hit a fresh 52-week high level of Rs 76.15 on NSE. Also, the volumes have risen for fifth consecutive week, which shows rising buying interest among the market participants.

On YTD basis, the stock has already jumped over 20%, thus outperforming the broader market and most of its peers. From its recent wing low of Rs 62.55, the stock has bounced nearly 20%, thus showing strong uptrend in short term. As per the technical parameters, the stock is in a strong uptrend and possesses massive strength. The 14-period daily RSI (70.77) is in the super bullish terror and display strong upside momentum. Majorly, all technical indicators are pointing northwards, which is a strong indication of upside potential. Moreover, the OBV is at its peak, which demonstrates rising buying interest. All the key moving averages are in an uptrend. Overall, the stock is strongly bullish and is expected to trade higher.   

Currently, the IDFC share price is trading at 75.50 level. As per the price pattern, the stock has the potential to gain 20-30% in medium term. Momentum traders should include it in their watchlist to track its progress!  

IDFC is a midcap NBFC, engaged in financial services that includes investments, private equity, loans, etc. It is one of the strong growing company of its sector.

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