Bank of Baroda: - BUY

Bank of Baroda: – BUY

CMP – Rs. 201/- share

Target – Rs 218/- share

Stop Loss – Rs. 192/- share

Upside – 8.60%

Why invest in “Bank of Baroda”?

Technical View

  • The PSU banking stock is trading at a hair’s breadth from its life high.
  • On the weekly time frame, it is apparent that the previous life high of 206 is acting as an immediate supply zone. Though the price action marked a new life high close to 211, it failed to sustain above the former level now acting as immediate pivotal resistance.
  • The price action has undergone a long consolidation phase of nearly 7 months. Within the
  • constructive base that it formed, the price action has seen volatility compression at elevated
  • levels.
  • The pattern witnessed a bullish breakout from the pattern on 3rd July, 2023.
  • The breakout zone is now acting as the support zone and the price action is forming a potential constructive base.
  • The price action has fair EPS, price and buyer’s strength which is a positive.
  • The RSI across daily and higher time frame are trading above their medians without showing any divergence against the price.
  • The 50 period volatility remains at lower levels and hence the probability of any unruly move is less likely going forward.
  • We anticipate a potential upside of 8.6% for the target of 218 from the current market price and confine the risk appetite to the levels of 192.

Click here to view the detailed report.

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