Technical Analysis

Bank of India (₹103.4): BUY

Gurumurthy K | Updated on July 30, 2018 Published on July 30, 2018

The outlook for the stock of Bank of India is bullish. The stock has been surging higher over the last couple of week. It tumbled to a multi-year low of ₹76.1 earlier this month and has reversed sharply higher from there. The stock has skyrocketed over 35 per cent from this low.

Monday’s rally of over 5 per cent is adding strength to this up-move. Support for the stock is at ₹98 and a cluster of supports are poised around ₹95. Dips to these supports are likely to find fresh buyers coming into the market. Resistance is at ₹108 which is likely to be tested in the near term.

A strong break above can take the stock higher to ₹113 initially. Further break above ₹113 will then increase the likelihood of the stock extending its rally to ₹120 in the coming weeks.

Short-term traders can go long at current levels and also accumulate at ₹100. Stop-loss can be placed at ₹96 for the target of ₹120. Revise the stop-loss higher to ₹105 as soon as the stock moves up to ₹107.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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