Today's Pick

Bank of Baroda (₹131.7)

Gurumurthy K BL Research Bureau | Updated on January 20, 2018 Published on May 23, 2016

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The outlook for the stock of Bank of Baroda is bearish. The stock fell 2.8 per cent on Monday. This fall has strengthened the downtrend that had begun in April. Prior to this downtrend, the stock was on a strong upmove from the February low of ₹109.45.

This rally halted near ₹164 in April and the stock had reversed sharply lower thereafter. The stock had reversed from the 200-DMA and the 50 per cent Fibonacci retracement resistance level. This has been keeping the long-term downtrend intact. An immediate fall to ₹127 looks likely. Further break below ₹127 can drag it to ₹120 thereafter.

Traders with a short-term perspective can go short. Stop-loss can be placed at ₹138 for a target of ₹122. Revise the stop-loss lower to ₹128 as soon as the stock moves lower to ₹125.

The downside pressure in the stock will ease only if it breaches above the 100-DMA resistance poised at ₹142.

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

Published on May 23, 2016
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