Wednesday, December 22, 2010

Lakshmi Vilas Bank Buy

Lakshmi Vilas Bank (Rs 116.7): Buy


Traders with short-term perspective can consider buying the stock of Lakshmi Vilas Bank. It is evident from the charts of the stock that the short-term correction from the significant resistance level of Rs 140 from early November, halted around Rs 100 early December. The long-term up trend-line that has been in place since March 2009 low of Rs 37, supported the stock's halt. The 200-day moving average positioned around Rs 103, also cushioned the stock's arrest. Moreover, triggered by positive divergence displayed in the daily relative strength index and price rate of change indicator, the stock changed direction and resumed its long-term uptrend. On December 21, the stock jumped 6.5 per cent, accompanied with above average volume, breaching its 21-day moving average. This has reinforced bullish momentum in the stock. The weekly RSI rebounded from 40-level and is at present rising in the neutral region towards the bullish zone, and daily RSI is also heading towards this zone. Daily moving average convergence divergence oscillator has signalled a buy. Our short-term forecast on the stock is bullish. We anticipate it to rally further until it touches our price target of Rs 120.5 or Rs 124 in the forthcoming sessions. Short-term traders can consider buying the stock with stop-loss at Rs 113.

Source : Businessline.in

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