Buy Bank Of Baroda, Target Rs 132: Dharmesh Shah

We Expect Stock To Resolve Higher And Head Towards Our Earmarked Target Of Rs 132 Levels In The Coming Month, Says Dharmesh Shah Of ICICI Securities.

The share price of Bank of Baroda has bounced back after finding support from 61.8 percent retracement of recent up move seen from October low to November highs (Rs 91 - Rs 118) indicating resumption of uptrend, thereby offering a fresh entry opportunity, with a favourable risk-reward set up

Past two months price action has been enclosed inside the upward sloping channel formed adjoining subsequent lows of October and December of Rs 91 – Rs 102 and projected from Rs 115, suggesting positive bias. Meanwhile, the immediate support is placed around |109 as it is 50 percent retracement of current up move (Rs 102 – Rs 117), placed at Rs 109 levels

Among oscillators, the weekly MACD indicator logged a bullish crossover and now inching upward, thus supporting the positive bias

We expect stock to resolve higher and head towards our earmarked target of Rs 132 levels in the coming month as it is confluence of:

- 61.8 percent retracement of the last major decline Rs 156 – Rs 91, placed at Rs 131

- 200 days SMA is placed around Rs 128

- Bearish gap (Rs 135 – Rs 126) recorded on September 18.

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