This PSU Bank has soared over 15% in just 4 trading sessions; do you own it?
This PSU banking stock jumped nearly 4% on July 12.
The stock of Indian Bank (Scrip name: INDIANB) has soared nearly 4% on Tuesday and is one of the top gainers of Nifty 500 universe. In the last 4 days, the stock has gained 15% amid strong buying interest. It has outperformed most of its peers during this period and is currently the hot topic among traders. Interestingly, the stock has registered a breakout from its triangle pattern and has recorded above-average volume. The volume on Tuesday is greater than the 10-day and 30-day average volume. Thus, the price structure is quite bullish.
As per the technical parameters, the stock possesses strong bullish momentum. The daily 14-period RSI (73.27) is in the super bullish zone and above its prior swing high, indicating strong strength. The ADX is in an uptrend and +DMI is above -DMI. The On Balance Volume is at its peak, which indicates strong strength from the volume's perspective. The Elder Impulse System, along with TSI and KST indicators maintains a bullish view of this stock. Interestingly, the scrip is about 15% above its 20-DMA and 200-DMA, which expresses the bullishness of the stock.
This rally is primarily due to the buzz that the government might reduce their stake of 51% in PSU Banks to 26% in the upcoming privatisation bill. This is likely to ease off some pressure on the business of the PSU banks. Also, the stock is above 61.8% above its prior downtrend, which is a positive sign.
In a nutshell, the stock is expected to continue its momentum forward in times to come. It can test the level of Rs 195, followed by Rs 210 in the medium term. It provides several trading opportunities for swing traders. However, considering the recent run-up, profit booking induces weakness in the stock below the level of Rs 155. Keep this stock on your watchlist to track its further development.
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