PSU stock: Check chart: After delivering 60% return in a year, this PSU stock could hit a 52-week high in 6 months

Bank of India, part of the PSU banking space, is up more than 60% in a year and recent price action suggests momentum is still intact that could send shares to new record highs in 6-months. Next 12 months, experts suggest.

Bank PSU has increased from Rs 121.50 recorded on August 30, 2021 to Rs 194 on August 30, 2022, which is an increase of more than 60% in a year.

Short-term traders can look to buy the stock now or drop to Rs 180-150, with a possible target of Rs 350-400, experts suggest.

Check chart

The stock has been on an uptrend so far in 2022. It is up more than 9% in a week and more than 10% in a month. So far, the stock is up more than 39% in 2022.

On the weekly chart, the stock has broken out of a connecting downtrend line resistance from the August 2018 high near Rs 400 to August 2022 high above Rs 190. .

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The Relative Strength Index (RSI) is at 69.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data is displayed. MACD is above its center line and signal line, which is a bullish indicator.

On the price front, the stock is trading above most of the key short-term and long-term moving averages of the 5,10,30,50,100 and 200-DMA, which is a positive sign for the bulls.

The share price started falling from Rs 428 (November 2017) creating lower highs and lower lows along with below average trading. It started to rise after hitting a low of Rs 41.70 in March 2020.

“After bouncing up from the March 2020 low, the supertrend indicator turned positive and the stock hit a high of Rs 195 in October 2021. Uptrend solid since March 20 for see a strong Bull Grip in stocks,” Bharat Gala, President – Research Engineering, Ventura Securitiesspeak.

“After hitting a high, the stock entered a consolidation phase, but consistently making higher lows created a trendline (between August 2018 and August 2022), he said.

“The stock recently formed a positive candle, making a high of Rs 197 from the previous recent high of Rs 195, after consistently trading above the trendline for the past few weeks, ” he added.

The Aroon up/down, KST and ROC indicators show strong upside potential.

‘Aroon’ is used to measure the direction of a market trend and determine the possibility of a reversal, know that for sure or KST is a momentum oscillator used to identify trading signals for Traders and rate of change is an indicator of momentum over a given period.

“The possible targets are Rs 350-400 for the next 6-12 months. If the share price corrects downwards, the buy levels are Rs (181-171 Rs) – 164- (Rs 155-151). The stop loss to watch for in the trade is Rs 135,” Gala recommends.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)

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