The stock of Equitas Small Finance Bank steadily rallied during the first few months of this year. The price rose from about ₹38 by the end of 2020 to hit a high of ₹68.25 in the first week of March. However, the price level of ₹65 being a strong resistance, the stock, after trading above that level briefly, started to decline in the subsequent month. That is, by mid-April, the price had dropped to ₹50 thereby losing nearly 27 per cent in little over a month.
Nevertheless, the price level of ₹50 acted as a strong base, on the back of which the scrip started to recover. However, after reaching the resistance at ₹65 in June, the price again depreciated. But unlike the fall in March, the drop in price was shallow comparatively as the stock found support at ₹58.
On Wednesday, the scrip rose sharply with substantial volume and breached the resistance of ₹65 and now, the outlook is bullish. Thus, buy the stock with stop-loss at ₹61.5 for a target of ₹69.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)