Keep an Eye on This Private Bank Stock for Trading

  • Stock Market Analysis

About the company:

Kotak Mahindra Bank (NS: KTKM ) is a diversified financial services group that provides a wide range of banking and financial services. Its service portfolio includes retail banking, treasury, corporate banking, investment banking, stockbroking, vehicle finance, advisory services, asset management, life insurance, and general insurance. The stock is trading at a discount of 2.40% from the all-time high / 52- week high level. The 52-week range is Rs 2,049 – Rs 1,231.

Technical observations:

One-week time frame: (Fig 1)

On the weekly time frame, KMBL stock has broken out of a Bullish Flag pattern. After breaking out of a critical resistance level of Rs 1,645 in Nov 2020, it consolidated for a while. It again tested the Rs 1,645 level in July 2021 and rebounded from there to its current levels. Above-average volumes accompany the upward movement. Relative Strength Index (or RSI) is above 55, and the Moving Average Convergence Divergence (or MACD) line has crossed the signal line below. It indicates the scrip’s bullish momentum. Long-term investors should invest at the current level by keeping a stop loss of Rs 1,642 on a weekly closing basis. Our view on the share will negate this level.
One day time frame: (Fig 2)

On a daily time frame, Kotak Bank share has made a Cup and Handle pattern. We can see that the share is likely to test a vital resistance range of Rs 1,815 - Rs 1,825. We expect the stock to break out of this range and move northwards, accompanied by higher volumes. Also, note that RSI is above 60, and the MACD line has crossed the signal line from below. It again indicates the stock’s positive momentum. Positional traders should enter when the scrip sustains above Rs 1,825. You should maintain the stop loss at Rs 1,712 on a daily closing basis.

We believe Kotak Mahindra bank share maintains positive bias and moves higher in upcoming trading sessions. Short-term traders should enter only above the Rs 1,825 level and keep a strict stop loss of Rs 1,798 on a daily closing basis.

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  • Pawan Kumar Jha @Pawan Kumar Jha
    Now Sameer has picked this stock when it has moved from 1645 to 1840 levels in past 14 days
    Like 1
    • Sameer Padole/ @Sameer Padole/
      @Pawan Kumar Jha Please note the stock price movement.
      Like 0
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  • arvind sharma @arvind sharma
    Great bank among three HDFC bank, ICICI bank and Kotak.
    Like 5

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