With a 3 percent rise in stock price and higher volumes, IndusInd Bank has emerged as the biggest gainer in the Nifty50 league on June 23.
The IndusInd Bank stock has formed a long, bullish candlestick pattern with small upper and lower shadows on the daily charts. It was trading at Rs 1,311 at the time of writing this article.
The stock has given a breakout of consolidation seen after the recent swing high of 1,343, which can also be a falling wedge pattern breakout, indicating the possibility of a trend reversal on the higher side. Wedge pattern includes two trendlines with one connecting high points and second connecting low points.
The stock of the private sector lender has support at a low of June 1, which is placed at 1,251. If it surpasses previous swing high placed at Rs 1,343, then there is a possibility of upward journey in the counter, experts said.
Momentum indicators RSI (relative strength index) at 60 levels on the daily charts showed positive bias, while MACD (moving average convergence divergence) on the weekly scale remained in the positive crossover, hence further upside can't be ruled out.
IndusInd Bank has been a laggard in the Nifty Bank space which has not seen a great move from the Covid lows unlike other stock. The stock has been consolidating since October 2021, and since then it has rallied just 15 percent.
"The stock has recently broken above the Rs 1,240-1,250, which is the upper threshold of this consolidation. The stock appears to have retested this breakout level this week and, going forward, a follow-through above Rs 1,340-1,350 is likely to add to the bullish momentum," Viraj Vyas, CMT Technical and Derivatives Analyst of Institutional Equity at Ashika Stock Broking, said.
The IndusInd Bank stock price has experienced a recovery following a retest of the breakout level of horizontal trendline support. The stock recently broke out and climbed above its previous high, generating upward momentum.
"Over the past few days, the stock retraced to the breakout level or support level, indicating a change of polarity. It underwent a full throwback but subsequently rebounded. Therefore, it is advisable to hold onto the stock, as there is potential for an upward movement of approximately 3.5 percent," Foram Chheda, CMT, Technical Research Analyst and founder of ChartAnalytics.co.in said.
To mitigate risks, it is recommended to maintain a stop-loss (stop-loss) below Rs 1,259, she said.
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