Trend Reversal: A Watchlist Stock for BIG Breakout!

  • Stock Market Analysis
  • Editors Pick

As the broader market continued its upside momentum on Tuesday, one stock that is gearing up for a big breakout and should be kept on the radar is SBI Cards and Payment Services Ltd (NS: SBIC ). It is a well-known credit card issuer in the country with a market capitalization of INR 69,254 crore, making it the 121th largest listed company on the NSE.

The stock had been in a downtrend for a long time. The fall that started from INR 890 odd levels eventually threw the stock to a low of INR 699 a few days back. This prolonged decline also set the stage for value investors who are now getting active in accumulating this counter.

Image Description: Daily chart of SBI Cards and Payment Services

Image Source: Investing.com

The stock has already started to recover from the lows and is now gearing up to break its falling trendline resistance on the daily chart. The break of this trendline will mark the trend reversal in the stock and because it is a very long trendline, the potential reversal can be more reliable.

The current resistance is present somewhere at INR 745 and the stock closed just below it, at INR 740.2 today. Once this hurdle gets crossed, a rally can be seen till the next selling zone of INT 780, after which INR 810- 820 will be the next stop for the stock. It the stock again breaks INR 700, then bears are expected to further increase selling pressure.

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  • Ravi Ghelada @Ravi Ghelada
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