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The stock of Bank of India (₹178.9) is ruling at a crucial level. The stock finds immediate support at ₹163 and the major one at ₹136. A close below the latter will change the short-term outlook to negative. However, we expect the stock to remain bullish in the short to medium term. Immediate resistance appears at ₹192 and a close above that level will lift the stock to ₹232. Only a close above ₹336 will make the long-term outlook positive for Bank of India.
F&O pointers : BoI December futures witnessed a marginal accumulation of open interests on Friday along with rise in share price while its January futures added healthy positions. Option trading (in December contracts) indicates that the stock could move in the ₹170-190 range. January options are lacklustre.
Strategy : Traders can consider going long on Bank of India futures. While stop loss can be placed at ₹163, traders can aim for an initial target of ₹192. Stop loss can be shifted to ₹177, if the stock closes above ₹181.
Traders/investors with a high-risk appetite, and deep pockets to withstand wild swings, can roll over the positions for successive months to achieve an even bigger target of ₹232.
Follow-up : Hold CG Power futures, as recommended with stop-loss while options would have triggered stop-loss.
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