perspective. It is clearly visible from the charts of Lakshmi Vilas
Bank that it was on an intermediate-term downtrend from September 2008
to early March 2009 low (from Rs 110 to Rs 51), forming lower peaks
and lower tops. However, the stock found support at around Rs 51, a
52-week low and reversed its trend. The stock has been on a short-term
uptrend from this low.
On March 13, the stock almost jumped up by 5 per cent penetrating its
intermediate-term down trendline as well as 21-day moving average. The
daily relative strength index (RSI) is rising in the neutral region
towards the bullish zone and the weekly RSI has entered in to the
neutral region.
Moreover, daily moving average convergence and divergence (MACD) is
signalling a buy. The price rate of change indicator has entered in
the positive territory indicating buying interest.
Our short-tern outlook on the stock is bullish. We expect the stock's
short-term uptrend to prolong until it hits our price target of Rs 67
in the approaching trading sessions. Traders with short-term
perspective can buy the stock while maintaining a stop-loss at Rs 56.
Source: HBL
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