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Oriental Bank #37: Buy | Target Rs 110 | Arijit Banerjee

OUR RECOMMENDATION

CMP#97.3
IdeaBUY
Buy Range95 – 99
Target110 – 116
StopLoss*90
Duration45 – 50 Trading Sessions
Potential Return^16 – 22%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
97.3BUY95 – 99110 – 1169045 – 50 Trading Sessions16 – 22%

# CMP on Mar 12, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 103.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Incorporated in 1901, this Indian commercial bank operates through Corporate and Retail banking, treasury operations and other banking business. Having a network of 2389 branches and 2632 ATM kiosks, the bank offers various deposit accounts, loan accounts, mediclaim services and DMAT services. For the quarter ended 31-12-2018, the company has reported a Standalone interest income of Rs 3071.87 Crore, up 4.3% from the last year same quarter Interest Income of Rs 2945.31 crore. The bank has reported a Net profit after tax of 144.96 Crore in the latest quarter.

Stock Data
NSE CodeORIENTBANK
SectorNifty Bank
52W High105.7
52W Low58
Face Value10
Relative Performance_Oriental Bank vs Nifty Bank Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • After a consistent downtrend since May 2017, the stock price has shifted into sharp upside bounce in the last few weeks, crossed above long term resistance zone in December 2018.
  • The medium term trend is positive as it has been making higher top – higher bottom formation from the last four weeks.
  • The recent development on the price front indicates conclusion of the corrective phase.
Oriental Bank Weekly Chart.
Oriental Bank Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock price is above the Bollinger Band (15,2).
  • ADX and +DI remains in a rising trajectory.
  • RSI (14) is in bullish zone crossing above 50.
  • Overall a positive chart and momentum pattern indicating an opportunity for a BUY trade. Look to Buy this stock as per the levels mentioned above.
Oriental Bnak Daily Chart
Oriental Bnak Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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