The short-term outlook is bullish for Bank of India. The stock rose 2.8 per cent on Monday, breaking above the key resistance level of ₹87. The moving average cross-overs on the daily chart also strengthens the bullish case.
As such, the level of ₹87 can now act as a good resistance-turned-support for the stock going forward. Intermediate dips can see fresh buyers coming into the market around ₹87, limiting the downside.
Bank of India share price can surge to ₹100-105 over the next three-four weeks. Traders can go long at current levels. Accumulate on dips at ₹88. Keep the stop-loss at ₹83. Trail the stop-loss up to ₹93 when the stock moves up to ₹96. Move the stop-loss to ₹97 when the Bank of India’s share price touches ₹99. Exit the long positions at ₹102.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)