In the previous session, the market saw a short covering from yesterday’s levels .The Nifty Index opened on a positive note. However, in the middle of the market the index saw corrections from higher levels. Post that the index recovered all its loss and closed with a net gain of 143 points. Technically, the Nifty index formed a bullish candle on the daily chart and managed to sustain above the Middle Band Bollinger. Due to near month expiry, we recommend approaching the markets in a stock specific way.

Look at the below research report of Stocks to Buy for – Wednesday, October 27, 2021’before the market opens.

AU Small Finance Bank Ltd

NSE :AUBANK   BSE :540611  Sector : Banks

On the daily chart, we can see that AUBANK stock prices have formed a ‘Cup and Handle pattern’ and are currently placed above the Neckline resistance of the handle. It is a continuation pattern which is formed when there is a prior uptrend, followed by a consolidation zone. As per pattern theory, 150 points movement on upside can be expected in coming days.

We have plotted Parabolic SAR on the chart. The Parabolic dots are moving below the prices which indicates that stock is now in uptrend. This indicator is most useful in terms of Entry and Exit levels in any stocks for trading purposes. The Relative Strength Index (RSI) on the daily chart is 59 indicating positive divergence with the price.

As the chart looks attractive, one can initiate buy and accumulate this stock near Current price 1260 levels. Add more on dips around 1225 levels. We can expect it to reach a target of 1330/1390 levels based on our analysis. This outlook is valid as long as we do not see any closing below Parabolic SAR support.

Check More Analysis on AUBANK at: AU Small Finance Bank Ltd