Comments
Bank of India has been in a long-term downtrend. Year-to-date, the stock has posted a little over 50 per cent and is currently trading at ₹34.3, where it was at ₹70 at the beginning of the year.
The stock, which has been depreciating since the beginning of the year, registered its fresh one-year low of ₹30.4 in the second week of March. The price is also the lowest since January 2003. But then, the stock recovered sharply and started to consolidate around ₹35. Notably, the price level of ₹35 has been acting as a significant hurdle, resisting the stock to rally above it.
Today, on the back of the broad market bullish sentiment, the stock opened at ₹35.75 i.e. above the crucial level of ₹35. However, the stock could not sustain about that level and it began descending immediately after the session open. In fact, the day’s high is same as the open price of ₹35.75. So, until the stock remains below ₹35, the likelihood of a recovery is low. Hence, traders looking for short-term opportunities can initiate fresh short positions in the stock of Bank of India. Stop-loss can be at ₹35.1 whereas the primary target can be at ₹32.5; below that level, it can decline to ₹30.4 – its previous low.
Supports: ₹32.5 and ₹30.4
Resistances: ₹35 and ₹35.7
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.