If you like bank stocks then it belongs to you: Allahabad Bank

If you are fond of banking stocks and thinking to accumulate the SBI, ICICI or Axis on lower and attractive rates then here is another Gem for you to buy at very cheaper valuations. Yes, It is Allahabad Bank which is going to pick up in one or two trading sessions. It has been cracked down from 175 level when it had crossed below it after forming a triangle for downtrend. It has gone to deep downtrend in month of may. But it has now reached in bottom out phase and it is now ready to reverse for a bounce back. Technically it is showing consolidation in trend on ADX where we can see on charts that trend to be changed. RSI is still in oversold zone where it has ended forming lower highs and lower lows while forming a triangle on RSI if plot trendline on it. MACD is showing positive divergence while prices were making negative lines  which is a good sign of reversal . For confirmation we can see the volume front where we can see a rounding bottom is forming which is also a sign of reversal . Today if we take some cues from f&O segment then we can clearly see that the stock is trading on premium in futures while most of the other stocks are on discount. So we strongly recommend to buy the stock at levels around 125-128 while placing a stoploss below 113.50 for target of 155-175 in 3-4 weeks.