Federal Bank is Religare's pick of the month for May, 13% upside seen at TP of ₹176; should you buy?

livemint.com:

Federal Bank as its stock pick of the month for May 2024 with a potential upside seen around 13 per cent. Shares of Federal Bank were on an uptrend and gained one per cent today to hit an intra day high of ₹158.55 against a 52-week high of ₹166.65 apiece on the BSE. On Friday, April 26, shares of Federal Bank settled 0.61 per cent higher at ₹156.95 apiece on the BSE.

Federal Bank has given five per cent returns in the last one month, 10.79 per cent returns in the last three months and 17.77 per cent returns in the last one year, according to Trendlyne data. Also Read: Federal Bank introduces 'Flash Pay' RuPay smart key chain for secure contactless payments. Details here At a current market price (CMP) of ₹156, Religare sees a potential upside of 13 per cent on Federal Bank stock at a target price of ₹176 from an initiation range of ₹154- ₹157 and a stop loss of ₹146.

Religare Broking highlights in its report that Federal Bank has been gradually inching higher forming base on base pattern on the higher degree chart highlights accumulation at the elevated levels. The stock is trading in an upsloping channel from past more than 10 months and recently has rebounded higher after taking support near the lower band of the channel. ‘’It has formed an inverted head & shoulder pattern which coincides with its short term moving averages adding further confirmation to bullish view.