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Technical Observations

The stock is rebounding after forming a higher base at the 200 days EMA and 80% retracement of the previous major up move (| 87-157) signalling a resumption of up move and offers fresh entry opportunity with a favourable risk reward set up

We expect the stock to head towards | 120 levels in the coming sessions as it is the 38.2% retracement of the last two months corrective decline (| 157- 96) placed at | 120 levels

The stock has already taken nine weeks to retrace just 80% of the preceding four weeks rally (| 87 to 157). A shallow retracement signals a robust price structure and a higher base formation

The daily 14 periods RSI has formed a base at the neutral reading of 40 and has recently generated a buy signal moving above its nine periods average thus validates positive bias in the stock

Buy Indian Bank Limited @ 107.00-110.00 TGT 120.00 SL 101.00

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