Buy RBL Bank, target Rs 620: Ashish Chaturmohta

RBL Bank | BNP Paribas Arbitrage sold 36,84,210 shares at Rs 125.86 in a bulk deal on NSE. (Image: PTI)

Ashish Chaturmohta

RBL Bank has been trading sideways to negative between Rs 600 to Rs 450 odd levels for more than a year now. It has formed a bullish inverted head and shoulders pattern on the weekly chart and witnessed a breakout on strong momentum and high volumes couple of weeks back.

After hitting a 52-week high of Rs 570, the price has corrected on below-average volumes to test the breakout level and then bounced back. The Relative strength index has given positive crossover with its average.

Thus, the stock can be bought at current level and on dips to Rs 552 with a stop loss below Rs 535 for target of Rs 620 levels.

Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.