TECHNICAL REPORT ON INDIAN BANK

PRICE INFORMATION

WEEKLY CHART

DAILY CHART

CHART INTERPRETATATION & RECOMMENDATION –

Indian Bank has succeeded to get a break out on the upside from its major resistance of Rs. 150, that too on huge volumes (as can be seen on the weekly chart). For the first time since May 2008 it has managed to close above this level, however a weekly close above 150 will make this breakout more attractive (for which we have to wait and see Friday’s closing).

More interestingly, the daily chart throws better and encouraging signals on the stock pattern. It was forming an “Ascending Triangle Pattern” since May this year which gave a breakout this week on the back of multifold volumes and took the stock price to one year high. There was also another bullish pattern which was being formed in the stock, commonly known to us a “Continuing Head & Shoulder “. Now as a ritual after the breakout from both of these patterns the stock price retraces back to the upper boundary/neckline, which in this case is at around 150. We therefore give a strong BUY recommendation on the stock around Rs. 150 with a Stop of Rs. 130 for three months target of Rs. 200.