ICICIdirect.com's report on IndusInd Bank
During the week, the banking index had remained subdued and did not participate in the Nifty up move of over 3% till Wednesday. However, in today’s session, post Moody’s revised outlook on Indian sovereign rating to positive (Baa3), banking stocks are seeing a resumption of buying interest. We have identified IndusInd Bank, as of one of the Banking stock, which could move up ahead of its results later during the month
IndusInd Bank has also remained resilient in the current decline of the Bank Nifty. Where the Bank Nifty fell 14% post RBI’s rate cut on March 4, IndusInd Bank fell 9%. The stock has been broadly consolidating in the range of Rs 865-930 since the start of March. In today's session, the stock has moved above the consolidation band of Rs 930 on the back of renewed buying in the delivery segment
In the futures segment, the stock witnessed short addition of over 15% in March when it fell over 9%. These short positions are seeing constant closure, fuelling upsides in the stock. This short covering may continue towards its results, which are likely to be announced on April 16
On the March expiry, as the stock tumbled to Rs 855, it witnessed three-month high delivery volumes. Since then, it has been gradually moving up suggesting buying emerging at lower levels
The historical volatility in the stock also suggests the stock is poised for upsides from current levels as the 30D HV is constantly coming down. This cool-off in HV bodes well for upsides in the stock
In the trailing one-year, the stock has seen constant support near the key 100 DMA, which is placed near Rs 870. Hence, any intermediate decline in the stock is likely to attract support near this level
"Buy IndusInd Bank in the range of Rs 910-927. Target Rs 1110. Stop loss Rs 828. Time Frame: Three months", says ICICIdirect.com research report.
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