Bank of India (₹85.9): Sell

Investors with a short-term perspective can sell the stock of Bank of India at current levels. Since encountering a key resistance at ₹216 in November 2017, the stock has been in an intermediate-term downtrend. Moreover, long-term trend is also down . Key resistance in the band between ₹105 and ₹108 capped the stock’s rally in late May and then in early June this year. Subsequently, the stock resumed its downtrend and continued to decline.

On Wednesday, the stock plunged 4.8 per cent accompanied by an above average volume, strengthening its down-move. The stock trades well below its 21- and 50-day moving averages. The daily relative strength index has re-entered the bearish zone from the neutral region. Both the daily and weekly price rate of change indicators are featuring in the negative terrain implying selling interest. Overall, the short-term outlook is bearish for the stock. Traders can sell the stock with a stop-loss at ₹88. Targets are ₹82.5 and ₹80.5.

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

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