In Tuesday’s trading session, the markets opened positively but later reversed, resulting in a weak sentiment. Notably, IDBI Bank Ltd., from the banking sector, showcased outstanding relative strength, surging over 6.5% and breaking the breakout trendline of a “continuation pattern.”
IDBI Bank engages in providing commercial banking services to retail and corporate customers, operating through various segments like Corporate and Wholesale Banking, Retail Banking, Treasury, and Other Banking and Group Operations. The Corporate and Wholesale Banking segment covers deposit and credit activities, corporate advisory and syndication, project appraisal, and investment portfolio. The Retail Banking segment caters to credit and deposit activities primarily for individuals and small businesses, including priority sector lending. The Treasury segment handles a portfolio of investments, money market operations, derivative trading, and foreign exchange operations. The Other Banking and Group Operations segment includes operations and activities of group companies other than the bank. The company was founded on July 01, 1964, and is headquartered in Mumbai, India.
A detailed technical analysis of IDBI Bank’s stock performance from October 18, 2021 (Rs 65.25) to January 09, 2023 (Rs 62) reveals a significant Continuation Price Pattern, indicating the potential for a substantial price movement. In today’s trading session, the stock witnessed an impressive rally of more than 6.5%, accompanied by robust trading volumes of more than 47.86 million shares. This trading action breached the breakout trendline, and today’s close above the Rs 60.50 level will confirm the breakout.
As of now, IDBI Bank Ltd is trading above the breakout trendline level (Rs 60.50) at Rs 61.70. A daily close above Rs 60.50 would confirm the breakout of this technical price pattern, with a minimum target of approximately Rs 78, representing a potential increase of over 30% from the breakout level.
The 14-week relative strength index (RSI) indicates a comfortable position in the bullish zone around 71, and short-term key moving averages suggest strong momentum. Given these positive indicators, both momentum traders and long-term investors may find IDBI Bank Ltd an appealing prospect to watch in the upcoming sessions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.