The short-term outlook for the stock of IDBI Bank is bullish. The stock surged 6 per cent on Monday. This rally has broken the sideways consolidation in the band between ₹63 and ₹73 that was in place since March. Also, Monday’s rise which was accompanied by strong volume has taken the stock well above the 200-DMA at around ₹72 and the 50 per cent Fibonacci retracement resistance at ₹71.5. Support for the stock is in the range between ₹71.5 and ₹72.
An immediate rise to ₹77 — the 61.8 per cent Fibonacci retracement resistance is possible in the near term. A strong break above this hurdle can take the stock higher to the next targets of ₹80 and ₹82. Traders with a short-term perspective can go long. Stop-loss can be kept at ₹71 for a target of ₹81.
Revise the stop-loss higher to ₹77 as soon as the stock moves up to ₹79. The short-term outlook for the stock will turn negative only if it declines below the 200-DMA decisively. .
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)