Kotak Mahindra Bank shares are trading above their 200DMA and 50DMA. A breakout above ₹2000 could propel the stock towards ₹2150, while b support remains at ₹1900.
Stock Market: The stock market has witnessed volatility in recent months, but stock-specific action continues. Benchmark indices Sensex and Nifty are facing resistance at higher levels, but some stocks are exhibiting strength despite market weakness. One such stock is Kotak Mahindra Bank, which has been registering good gains recently.
Kotak Mahindra Bank in an Upward Trend
Kotak Mahindra Bank shares have been trading bly in the past few trading sessions. On Thursday, the stock closed at ₹1,981, with a market capitalization of approximately ₹3.94 lakh crore. Over the past three sessions, the stock has recovered from a low of ₹1,902. During this period, a picture-perfect breakout pattern is visible on the daily chart, indicating further strength.
Strong Signals on Technical Charts
Technically, Kotak Mahindra Bank stock is trading above its 200DMA and 50DMA. It has reached its upper range, and a fresh breakout above the ₹2,000 level could be imminent.
The daily chart shows a significant rally in the stock on Wednesday of last week, and it held higher levels on Thursday, a b positive signal. If a breakout above ₹2,000 occurs, it would be a multi-year breakout, potentially leading to significant upside targets for the stock.
Stock at Four-Year Highs
Kotak Mahindra Bank's share price has reached January 2021 levels. Over the past four years, the stock has attempted an upside breakout more than five times without success. This time, the probability of a breakout appears higher. The daily chart's momentum indicator, RSI, is near 60, indicating the stock's strength.
Potential for Stock to Reach ₹2150 After Breakout
If Kotak Mahindra Bank's share price breaks above ₹2,000, an immediate target of ₹2150 could be seen. At the lower end, the stock finds b support at ₹1,900, which can serve as a stop-loss level.
Strength in the Banking Sector
Recent days have witnessed buying in the banking sector, and investor interest in Kotak Mahindra Bank shares has increased. This stock has delivered a positive return of 12% in the last year. If a breakout occurs, this stock could offer good long-term returns.
