The outlook for the stock of AU Small Finance Bank is bullish. The stock has been trading sideways for over a year and moving towards the upper end of its range. Strong supports are at ₹1,270 and ₹1,240. Dips to these supports are likely to see fresh buyers into the market. As such, the downside could be limited to either ₹1,270 or ₹1,240 with resistance at ₹1,330. A break above it would boost the bullish momentum taking the stock up to ₹1,450 and even ₹1,500 in the next four to six weeks.
Traders with a short-term perspective can go long at current levels and accumulate on dips at ₹1,275. Stop-loss can be kept at ₹1,220. Trail the stop-loss up to ₹1,345 when the stock moves up to ₹1,380 and further to ₹1,390 as soon as it touches ₹1,415. Book profits at ₹1,430.
The rally to ₹1,450-₹1,500 will get negated only if the stock breaks below ₹1,220. In that case, the stock can decline to ₹1,140 and ₹1,050. But such a fall looks less probable.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)