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Trade Spotlight | What should you do with PNB Housing Finance, RBL Bank, IDFC First Bank on Thursday?

RBL Bank shares rallied 6 percent to Rs 167.55 and formed big bullish candle on the daily charts with above average volumes, making higher highs higher lows for second consecutive session. The stock has seen a nice and decisive breakout of horizontal resistance trend line in the gap up opening on Wednesday.

December 15, 2022 / 06:47 AM IST
 
 
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The market traded higher throughout session and closed with moderate gains on December 14 ahead of weekly expiry and Fed meet outcome. After market hours on Wednesday, Federal Reserve raised interest rate by 50 bps to 4.25-4.50 percent and hinted for more rate hikes going ahead.

The BSE Sensex gained 145 points to 62,678, while the Nifty50 rose more than 50 points to 18,660, and formed Doji kind of pattern on the daily charts, indicating indecisiveness and caution in the market going ahead.

The broader markets extended upward journey with the Nifty Midcap 100 and Smallcap 100 indices rising six-tenth of a percent and seven-tenth of a percent respectively.

Stocks that were in action included PNB Housing Finance which jumped 8.6 percent to Rs 481, and formed strong bullish candle on the daily charts with large volumes and making higher highs higher lows for second straight session. The stock has given a breakout of slightly downward sloping resistance trendline adjoining February 16, October 27 and December 1 this year.

RBL Bank shares rallied 6 percent to Rs 167.55 and formed big bullish candle on the daily charts with above average volumes, making higher highs higher lows for second consecutive session. The stock has seen a nice and decisive breakout of horizontal resistance trend line in the gap up opening on Wednesday.

IDFC First Bank was also in focus, rising 4 percent to Rs 62.7 and formed long bullish candle on the daily charts with healthy volumes. Also there was a break out of long downward sloping resistance trend line adjoining March 4, 2021, December 5, 2022 and December 6, 2022.

Here's what Kunal Shah of LKP Securities recommends investors should do with these stocks when the market resumes trading today:

IDFC First Bank

IDFC First Bank is trading in a strong uptrend with higher high and higher low formations intact on all the time frames. The stock has surpassed its previous swing high of Rs 61.2 which confirms a further up move toward Rs 68-69 levels.

The momentum indicator RSI (relative strength index) which was facing a hurdle around the level of Rs 73 is now on the verge of a breakout confirming the strength of the stock.

The stock is taking support around its 21 DSMA (day simple moving average) which is placed at Rs 58 acting as a support for the bulls.

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PNB Housing Finance

PNB Housing Finance has given a strong breakout on the daily chart with a sharp surge in volumes surpassing the critical hurdle of Rs 475. The stock volume was close to 45 lakh which is one of the highest in the past 2 months.

The momentum indicator RSI has given a positive crossover on the daily chart and entered the strong buying zone of 60.

The MACD (moving average convergence and divergence) indicator too gave a buy signal around the zero line. The lower-end support is visible at Rs 430 while the upper-end visible targets are Rs 530-570.

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RBL Bank

RBL Bank on the weekly chart has given a strong breakout and filled up the previous gap. The stock after a massive underperformance is showing signs of reversal.

The momentum indicators are in the strong buying zone which confirms the strength of the stock. The stock remains in a buy mode and can scale on the upside towards the level of Rs 180-190.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sunil Shankar Matkar