Sell BANK OF BARODA
|Sell Range||51 – 48|
|Target||44 – 41|
|Duration||12 – 15 Trading Days|
|Potential Returns^||11 – 17%|
|CP#||Idea||Sell Range||Target||StopLoss*||Duration||Potential Returns^|
|48.95||SELL||51 – 48||44 – 41||53.5||12 – 15 Trading Days||11 – 17%|
# CP – closing price on Apr 15, 2020
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 46.
^ Potential returns are calculated based on the median of sell range.
COMPANY OVERVIEW - BANK OF BARODA
Bank of Baroda provides different banking products and services to individual and corporate customers. They provide solutions like Personal Banking, which includes deposits, retail loans, credit cards, debit cards, services and lockers; Business Banking, which includes deposits, loans and advances, services and lockers; Corporate Banking, which includes wholesale banking, deposits, loans and advances and services, and international business, which includes non-resident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export finance, import finance, correspondent banking, trade finance and international treasury. As of Nov 18, 2019 Bank of Baroda’s distribution network included 9500 branches and 13500 ATMs. In Q3FY20, the company had reported a net loss of 1,406.95 crores. Net profit was dipped by 398% YOY.
|Sectoral Index||Nifty Bank|
BANK OF BARODA TECHNICAL ANALYSIS (WEEKLY)
- The consolidation phase of the last few weeks has resulted into a formation of a ‘Descending Triangle’ pattern on the weekly chart.
The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline that acts as support.
- Current stock price is near the resistance and a possible downside breakout is on the way.
- Such a downside breakout below the support proves further bearishness.
BANK OF BARODA TECHNICAL ANALYSIS (DAILY)
- Bank of Baroda stock price is trading well below 10 days and 20 days Exponential Moving Averages.
- We can see the 15 days EMA of OBV is moving downwards. In such a scenario, when the moving average is sloping downward and OBV is below the moving average, the trend will be considered bearish and biased toward short selling.
On-Balance Volume (OBV) indicator compares the positive and negative volume flows of a stock against its price over a time period.