Top buzzing stock: Kotak Mahindra Bank

The stock of Kotak Mahindra Bank is extremely bullish and has gained over 3.5% on Thursday.

The stock of Kotak Mahindra Bank is extremely bullish and has gained over 3.5% on Thursday. With this, the stock has crossed above its short term resistance of Rs 1813 with the resistance. It has registered above average volume which indicates larger trading activity in the stock. On the technical chart, the stock has surged above its 20-DMA. Today, the stock is the leading contributor towards the upside momentum of Nifty Bank. Since its prior swing low of Rs 1714, the stock has gained about 6% in just two trading sessions. On the weekly chart, the stock has crossed above its previous week’s high of Rs 1813. Moreover, the stock has formed a hammer candle on the monthly timeframe, which indicates strong buying at lower levels. Thus, the price structure looks bullish.

Along with its bullish price structure, several technical parameters point towards strong strength of the stock. The 14-period daily RSI has jumped above its prior swing high. Moreover, the MACD has given a bullish crossover. Interestingly, the OBV indicates a strong strength in the stock from volumes point of view. Along with this, the stock has seen huge addition of open interest on 1800PE. Moreover, call unwinding has been done in 1760, 1780, and 1800 strikes, which indicates bullish sentiment among the market players regarding the stock.

On YTD basis, the stock has generated about 2% returns despite bad global cues and has outperformed most of its peers. Overall, the stock is bullish for short term as validated by technical analysis. Considering its bullishness, the stock is expected to test the levels of Rs 1860 which happens to be its 200-DM, followed by Rs 1900 in short to medium term.  Moreover, it is an ideal candidate for swing trading. Swing traders/ Positional traders can expect decent gains from this stock in short to medium term.