Top buzzing stock: AU Small Finance Bank

The stock of AUBANK is bullish and has soared over 2% today.

The stock of AUBANK is witnessing a strong momentum lately and has surged about 18% in just seven trading sessions. After a decent gap-up, the stock continued to surge higher and hit the day’s high at Rs 1399.50. With this, it is inches away from its all-time high level of Rs 1420. On the technical chart, the stock has formed a strong bullish candle with its open=low. Moreover, it is trading near its day’s high. Thus, the price structure is quite bullish.

Along with its strong price structure, several technical indicators point towards the bullishness of the stock. The 14-period daily RSI has jumped into the super bullish territory and indicates strong strength in the stock. The trend indicator ADX also points northward and points out a strong uptrend. The MACD line continues to remain above the signal line and zero line and indicates the strong momentum of the stock. The technical parameters can be validated by the above-average volume recorded lately, which is found to be greater than the 10-day, and 30-day average volume. This indicates strong trading activity which is also justified by the OBV.

The stock has performed exceptionally well recently, On YTD basis, the stock has generated returns of over 34%, thus outperforming the broader market and most of its peers. In the past one month, the stock has delivered about 26% return to its shareholders. Considering its strong price action and volume, bullish technical parameters and recent performances, the stock is expected to trade higher in the coming days. It has the potential to test the levels of Rs 1450, followed by Rs 1465 levels. Moreover, it presents a good opportunity for swing trading. Short term traders/positional traders can expect decent gains from this stock as indicated by technical analysis.