Indian Bank is moving in line with all the other PSU Banking stocks. Indian Bank saw a correction from higher levels and in that process made a low of Rs 210 levels. Since the last 3 months, the stock has consolidatedÂ at 210-265 levels.
On the larger degree framework, the 200-210 zone is a strong support for the stock. It retested its low of Rs 210 just last week, and witnessed a sharp pullback from there and managed to close above its short-term resistance of 230 levels.
On the back of short covering, we expect Indian Bank to see further upside from the current levels and can test the upper side of the range. Therefore, traders can buy the stocks around Rs 240 levels with a target of Rs 265 and a stop loss placed below Rs 228.