Multibagger bank stock close to 52-week high. Further upside possible?

Market


Multibagger stock: Shares of Karur Vysya Bank have been in continuous uptrend for last six months. In this period, the mid-cap banking stock has surged from around 47 to 108.75 apiece levels, delivering more than 125 per cent return to its shareholders in this time. Karur Vysya Bank share price today opened with an upside gap and went close to its 52-week high of 116.20 on NSE in early morning deals.

According to stock market experts, whole banking segment is in uptrend and mid-cap stock available at reasonable price or say around 100 are attracting market bulls at a larger extent. They said that the banking stock has bounced back strongly from its lows of around 40 apiece and now it is trading above 100, delivering around 50 per cent to its shareholders. They further added that the stock may become highly bullish if it sustains above 118 and may climb to its new peak, leaving its current life-time high of 125 behind. Karur Vysya Bank share price had hit life-time high of 125 levels in September 2017.

Speaking on the reason for rise in Karur Vysya Bank shares, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, “Entire banking segment has been in uptrend for last six months, especially the mid-sized banking stocks that are available at a price range of 100. Karur Vysya Bank being available below 100 attracted buying interest of Dalal Street bulls and the stock may go up to 118 levels from current levels.”

Asked about Karur Vysya Bank share price outlook, Osho Krishan, Sr. Analyst — Technical & Derivative Research at Angel One said, “Karur Vysya Bank has seen a tremendous rally from the lows of 40 and has surged over 2.5X in the last six months. Technically, the stock is in a stellar bull run and is headed to reclaim its lifetime high zone. However, post such a vertical rally, one should not rule out the possibility of profit booking or correction. Hence it is advisable not to be very aggressive in the counter at current levels.”

Angel One expert further added that the support for Karur Vysya Bank share has shifted towards to the 100-odd zone, followed by the strong support of 92 to 94 levels. On the higher end, a decisive closure above the 118 level could only trigger the next set of a rally in the counter. Hence, it is advisable to keep a close tab on the mentioned levels and act accordingly from a short to medium-term perspective.

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Advising ‘buy on dips’ strategy in regard to Karur Vysya Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Karur Vysya Bank shares have strong support zone placed around 95 levels. The stock may witness some profit booking and come near to 100 levels. This would be a good buying zone fresh buyers or accumulation zone shareholders of the stock for next round of upside bounce. However, one must maintain a stop loss below 95 while taking fresh position or further accumulation. The stock may become highly bullish after closing above 110 apiece levels.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.


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