Bank of India - Sell

We recommend a sell in Bank of India from a short-term trading perspective. It is apparent from the charts that the stock has been on a broad sideways consolidation in the range of Rs 200 and 300 from this July. The stock tested the upper boundary level of Rs 300 thrice between September and October and was unable to move beyond this level. The 200-day moving average was providing significant resistance for the stock. It conclusively breached its 21- and 50-day moving average by tumbling almost 10 per cent last week. The daily relative strength index has entered into the bearish zone from the neutral region. Moving average convergence and divergence is indicating a sell and is declining in the negative territory which is inline with the stock. We are bearish on the stock from a short-term horizon. We anticipate the stock’s current decline to prolong further until it hits our price target of Rs 208 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 246.