Central Bank of India, part of the public sector banking space, has more than doubled investors’ wealth in the last six months and is on track to hit fresh 52-week highs.

Short-term traders can look to buy the stock now or on marginal dips as the momentum remains strong which could take the stock towards 80 in the next 3 months, suggest experts.

The public sector banking stock has risen over 25% in a week, over 30% in a month, over 50% in the last 3 months and over 100% in the last 6 months, Trendlyne data showed.

The momentum helped the PSU stock to break out from a Flag and Pole pattern on the monthly charts which has opened room for further upside, suggest experts. The neckline of the pattern was placed above 50.

If the momentum continues, a close above 74 levels could propel the stock to a fresh 52-week high above 80, they say.

The stock also broke out on the upside from a long consolidation since September 2018 seen on the monthly charts.“Central Bank of India stock has experienced a notable breakout above the flag and pole chart pattern on the monthly chart, supported by high volume, indicating strong bullish momentum,” Suraj Bathija, Founder & CSO at AlgoBulls, said.“Over the past three months, there has been a consistent increase in monthly trading volume. Achieving a 52-week high further reinforces the positive sentiment. The stock has successfully broken above a downward trend line, signaling a potential reversal,” he said.

The Monthly Relative Strength Index (RSI) has surpassed the 60-level mark, a significant milestone not observed in nearly a decade, affirming a robust uptrend.

On the daily chart, the stock has found substantial support at the 50-day Simple Moving Average (SMA), maintaining its position above this key indicator, indicating a continuation of the uptrend in the shorter time frame.

The daily RSI has consistently remained above 50, with periods above 60 in the last two months, reflecting strong and sustained positive momentum.

The stock is currently in a solid uptrend, supported by various technical indicators and chart patterns, suggest experts.

“Strong momentum is evidenced by the breakout, increasing trading volume, and a series of positive RSI readings,” highlights Bathija. Both technical analysis and fundamental factors align, providing a robust confirmation of the bullish trend.

“With the current stock price at 57, there’s an expectation for the upward trend to persist, reaching 72. A sustained breakthrough above 74 could propel the stock towards a higher target of 88 in the next quarter,” he recommended.

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

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