Kotak Mahindra Bank bounces from trendline support

The stock of Kotak Mahindra Bank is trading in a rising channel since March 2020. Considering the daily timeframe, the stock has given a bounce from the edge of the lower trendline support of the rising channel. The reversal from the support is confirmed by the above 30-day average volumes. Additionally, the stock has formed a sizeable bullish candle on the daily timeframe, which suggests that the bulls are taking control near the medium-term support.

The major trend of the stock is bullish, as it is trading above its weekly pivot and above its short and long-term moving averages, that is, 20-day, 50-day, and 100-day EMAs. The leading indicator RSI is currently quoting at 55.19 and it is trading above its nine-day average. Interestingly, on Tuesday, the daily RSI has given a neckline breakout of Adam & Adam double bottom pattern, which is a bullish sign. The daily stochastic oscillator is suggesting some bullish strength as well since per cent K is above the per cent D.

Going ahead, we expect the bias to remain positive as long as the stock sustains above Tuesday’s low of Rs 1,318 level. On the higher side, the level of Rs 1,385, followed by Rs 1,425, would be seen as the next resistance zone for the stock.

On Tuesday, the stock of Kotak Mahindra Bank closed at Rs 1,369.35 per share, surged by 3.15 per cent from its previous close. The stock opened at Rs 1,318.60 per share and hit an intraday high of Rs 1,374.95 and a low of Rs 1,318 per share on NSE.