Stock Radar: Kotak Mahindra Bank gives breakout above falling trendline; target seen at Rs 2,000

The private sector lender has fallen by about 19 per cent from its recent high of Rs 2,252 recorded on 27 October 2021. The stock seems to be taking support above the 50-DMA placed at Rs 1,770 and 20-DMA placed at Rs 1,782.

The stock, with a market capitalisation of more than Rs 3.6 lakh crore, has remained resilient amid market volatility. The stock has also given a breakout above the falling trendline channel around Rs 1,800.

Hence, any dips toward Rs 1,800 can be used to create long positions in the stock. A close above Rs 1,870 will give further momentum to the stock which could take it towards Rs 1,950-2,000 in the next 2 weeks, suggest experts.

ET CONTRIBUTORS

On the price front, the stock is trading above the 5,10,20,50 and 100-DMAs. It is still trading below the long-term moving average of 200-DMA placed at 1864, data from Trendlyne showed.

The stock closed 2 per cent higher at Rs 1,829 on Friday, May 20.

Stock Radar: Buy Kotak Mahindra Bank for a target of Rs 2000, Sumeet Bagadia’s recommendation

“Kotak Mahindra Bank has taken support of 50 and 20 Simple Moving Averages. The stock has given a breakout of the falling trend line at the level of 1800 and is sustaining the said levels. One can initiate a long position at current levels for the upside target of 1950 and 2000 levels,” Sumeet Bagadia, Executive Director, Choice Broking, said.

“On the daily time frame charts stock is moving in Higher High–Higher Low formation suggesting a bullish trend, Sumeet Bagadia, Executive Director, Choice Broking, said.

“Kotak Mahindra Bank has taken support of 50 and 20 Simple Moving Averages. The stock has given a breakout of the falling trend line at Rs 1,800 and is sustaining the said levels,” he added.

Positive crossover in MACD and RSI is sustaining above 55 levels, confirming the bullish trend. RSI is 56.0, in mid-range; below 30, RSI is considered oversold, and above 70 overbought.

“A closing and sustaining above Rs 1,870 will lead towards Rs 1,950-2,000 levels in coming weeks. One can initiate a long position at current levels or on dips in prices. Rs 1,800-1,810 levels should be used as a buying opportunity for the upside target of Rs 1,950 and Rs 2,000 levels with a stop loss to be placed around Rs 1,720 levels,” recommends Bagadia.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)