The stock of UCO Bank looks to be a good buy from both the short and medium-term perspective. It found good support near Rs 50 and gained 33 per cent from the low of Rs 46 recorded on August 28.
For the immediate short-term, cluster of support is seen in the band between Rs 59-58. While above this support zone, the stock can rally to Rs 66-68 band in the short-term . Traders with a short-term view can buy with a stop-loss at Rs 57.30.
For the medium-term perspective, the picture is even more bullish with good supports near Rs 55 and then at Rs 50. If the current momentum continues, then the stock has very good potential to trend northwards to Rs 75 and even to Rs 80 in the upcoming weeks. Only a break below Rs 50 will turn this outlook bearish and wipe out the chances of a rally to Rs 75-80 . But with the stock’s recent sharp gain of 15 per cent, an immediate fall below Rs 50 is unlikely. Having said this, risk appetite investors or traders can buy with a wide stop-loss at Rs 49.