Analysis and Prediction:
Suryoday Small Finance Bank Ltd (NSE: SURYODAY) is currently demonstrating a strong bullish trend on the weekly chart, making it an attractive candidate for a long position. Here's a detailed breakdown of the analysis:
Price Action: The stock has been on a significant upward trend since March 2023, consistently forming higher highs and higher lows. Recently, it has broken above the resistance level around INR 200, indicating strong bullish momentum.
Moving Averages: The 50-week Simple Moving Average (SMA) has crossed above the 200-week SMA, forming a Golden Cross, which is a strong bullish signal. The current price is also trading well above both the 50-week and 200-week SMAs, reinforcing the bullish sentiment.
Support and Resistance: The breakout above the previous resistance at INR 200 now acts as a strong support level. The next significant resistance level is around INR 240. However, aiming for a 30%+ profit target, the target price is set at INR 280.
Volume: The recent surge in volume accompanying the price increase suggests strong buying interest and institutional participation, which is a positive indicator for the continuation of the upward trend.
Relative Strength Index (RSI): The RSI is currently at 60.45, which is in the bullish zone but not yet overbought, indicating there is still room for further upward movement.
Trade Setup:
Entry: The ideal entry point for this trade is at the current market price around INR 207.90. If the price pulls back to the support level of INR 200, it provides an additional entry opportunity.
Stop Loss: A stop loss should be placed just below the support level, around INR 180-170, to protect against any potential downside risk.
Target: The profit target is set at INR 280, which represents a 30%+ increase from the current price and aligns with the next major resistance level.
Conclusion:
Suryoday Small Finance Bank Ltd presents a compelling long trade opportunity with strong technical indicators supporting further upward movement. The breakout above key resistance, supported by high volume and favorable moving average dynamics, suggests a continuation of the bullish trend. Traders should consider entering at the current price with a well-defined stop loss and target to manage risk effectively.
Suryoday Small Finance Bank Ltd (NSE: SURYODAY) is currently demonstrating a strong bullish trend on the weekly chart, making it an attractive candidate for a long position. Here's a detailed breakdown of the analysis:
Price Action: The stock has been on a significant upward trend since March 2023, consistently forming higher highs and higher lows. Recently, it has broken above the resistance level around INR 200, indicating strong bullish momentum.
Moving Averages: The 50-week Simple Moving Average (SMA) has crossed above the 200-week SMA, forming a Golden Cross, which is a strong bullish signal. The current price is also trading well above both the 50-week and 200-week SMAs, reinforcing the bullish sentiment.
Support and Resistance: The breakout above the previous resistance at INR 200 now acts as a strong support level. The next significant resistance level is around INR 240. However, aiming for a 30%+ profit target, the target price is set at INR 280.
Volume: The recent surge in volume accompanying the price increase suggests strong buying interest and institutional participation, which is a positive indicator for the continuation of the upward trend.
Relative Strength Index (RSI): The RSI is currently at 60.45, which is in the bullish zone but not yet overbought, indicating there is still room for further upward movement.
Trade Setup:
Entry: The ideal entry point for this trade is at the current market price around INR 207.90. If the price pulls back to the support level of INR 200, it provides an additional entry opportunity.
Stop Loss: A stop loss should be placed just below the support level, around INR 180-170, to protect against any potential downside risk.
Target: The profit target is set at INR 280, which represents a 30%+ increase from the current price and aligns with the next major resistance level.
Conclusion:
Suryoday Small Finance Bank Ltd presents a compelling long trade opportunity with strong technical indicators supporting further upward movement. The breakout above key resistance, supported by high volume and favorable moving average dynamics, suggests a continuation of the bullish trend. Traders should consider entering at the current price with a well-defined stop loss and target to manage risk effectively.