BANK OF INDIA
Open-80.30--High-81.10--Low-78.40—Close-79.75 on 7.7.2023.
Support:76.55/75.90/75/74.20/73.60/72/69.50/67.90—67.60/66.05.
Resistance:81.95/82.30/84.10/85.75/85.90/88.95/89.30/101.30/103.50/107.80/109.30/118.70/127.55/131/157.80/167.60/183.25/197.20/216.80.
(Bold and underlined figures are most important)
It made its all-time high of 589 on 8.10.2010 and thereafter it corrected with in between relief rallies and made a bottom of 30.40 on 13.3.2020. The correction lasted for 9 years & 5 months, which is phenomenally long period. Please note that since it made bottom of 30.40 it has been consolidating with sideways and steady up and down movement, therefore looking at overall technical chart setup now, it seems that it has bottomed out for good and may be heading for big rise in coming months/years. It is still consolidating and will take some time to catch up the strong up momentum.
Please note that if it has the strength then going down it should not break 74.90 and if it has bottomed out (according to me yes) then it should not break 69.50 and in worst case 66 on the closing basis and if it does break then it can slide further. So 74.90 will be an alert point and below 66 will be an exit point for the long trades.
Similarly moving up it will face strong resistance at 88.95---96.01---103.50 (thereafter see the resistance points mentioned above) if it closes above 88.95 or 89 and sustain then it will gain good strength and it may pick up strong up momentum once it moves above 103.50 and sustain on the closing basis then the real upside fireworks may begin.
In view of the above observation, please note that this stock is for investors and not for traders because it is in accumulating stage and not in momentum now, once it picks up momentum then traders can also take positions. Therefore it is suggested that investors can accumulate the stock now and on the decline till 69.50 and not below this in a staggered manner with a strict stop loss of 65 on the closing basis. It has good upside potential and it could triple from here or more in a time horizon of 24---30 months.
NOTE: - It is a technical assessment of the stock as of now, the
technical interpretation changes with the price movement and time, therefore it
has to be reviewed at regular intervals, furthermore investors are advised to look into
fundamental, financial details of the company and last but not the least
management perception for the future of the company before taking investment
decision.
Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.
Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.
Note: Price stated here are of spot market.
Contact me for strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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Thank you for sharing your views.