The 6.9 per cent surge on Monday has strengthened the upmove in the stock of Equitas Small Finance Bank. There is an immediate resistance at ₹72.50. Supports are at ₹65.50 and ₹64. Inability to break above ₹72.50 can immediately pull the stock down and keep it in a range of ₹64-₹72.50 for some time.
However, the bias will continue to remain bullish. Dips to ₹65-₹64 are likely to get fresh buyers coming into the market. As such the stock is likely to break ₹72.50 eventually and rise to ₹81-82. Traders with a short-term perspective can go long at current levels. Accumulate longs on dips at ₹66. Keep the stop-loss at ₹62. Take profit at ₹80.
Trail the stop-loss up to ₹71 as soon as the stock moves up to ₹73.50. Move the stop-loss further up to ₹75.50 as soon as the stock touches ₹78. Please note that if the resistance at ₹72.50 holds for now, the rise to ₹80 could be delayed. So, traders going long may have to wait patiently to book profits at higher levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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