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The outlook for Bank of Baroda (₹186.3) is bullish. The stock now faces resistance at ₹210 and a close above that will reconfirm the positive outlook for the long term. The stock finds support at ₹165 and a close below that level will change the short-term outlook to negative.
There are two triggers for the stock in the immediate term. BoB will declare its results on February 10 for the October-December period. On February 8, the Reserve Bank of India meets for monetary policy review.
F&O pointers: The Bank of Baroda February futures added open interest positions quite steadily. Over the week, it added close to five lakh shares in open interest along with a sharp rise in share price. Trading in options indicates that BoB could face resistance at ₹190. Heavy accumulation of open interest in ₹160-put, indicates strong support for Bank of Baroda.
Strategy: Traders could consider going long on Bank of Baroda futures with a stop-loss at ₹165. The stop-loss can be shifted to ₹184, if the stock opens on a positive note and sustains the gains on Monday. Traders could book profit at ₹210. Investors could consider rolling over the position for at least three series. A close above ₹228 will lift the stock to ₹294 level. While initial stop-loss can be placed at ₹165, investors should alter the stop-loss trailing the share price movement.
Follow-up: Hold Nifty December call.
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