The upmove in Indian Overseas Bank is gaining momentum. The stock has made a bullish breakout by surging over 10 per cent on Monday. This rise has taken the stock well above the key resistance level of ₹70will act as a good support now. Intermediate dips are likely to get fresh buyers around ₹70 and limit the downside. Moving average cross overs on the daily chart also strengthens the bullish case.
Indian Overseas Bank share price can rise to ₹85 in the coming weeks. Traders can go long now at ₹74. Accumulate on dips at ₹72. Keep the stop-loss at ₹68 initially. Trail the stop-loss up to ₹77 when the price goes up to ₹80. Move the stop-loss further up to ₹79 when the price touches ₹82. Exit the longs at ₹84.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)