Himalayan Bank Limited

Going by the current price movement of Himalayan Bank Limited, the scrip is forming a descending triangle, which is on the verge of breakout. Looking at this transition, it is recommended not to enter at the current level of Rs 989 but to wait for Rs 1000 breakout as it is highly safe entry level.

Reasons for the above strategy.

a.    Scrip forming a descending triangle, as mentioned above which is on the verge of breakout.

b.    Despite the heavy fall in other banking shares, this scrip continued to sustain within the range of Rs 910 to Rs 1,000 in the last two months or so.

c.    Currently, it is testing higher high resistance level of Rs 1,000, which is its sixth attempt in the past three years.

d.    Massive transactions of 21K and 13K were carried out recently at price hovering around Rs 990.

In conclusion, it is highly recommended not to make a buy position until this scrip makes break out of Rs 1000. Once this scrip breaks higher high level of Rs 1,000, its next target will be Rs 1,300.

Disclaimer: We have written this article based on the technical aspect -- mainly based on candle stick chart, Fibonacci tool, and Turnover oscillator -- of the market. We cannot be held accountable for any decision made on the basis of this article.