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    Big Movers on D-St: What should investors do with Bank Of India, Union Bank of India and RCF?

    Synopsis

    Stocks that were in focus include names like Bank of India which was up nearly 5%, Union Bank of India which gained over 6%, and RCF which was up over 3% on Tuesday.

    Big Movers on D-St: What should investors do with Bank Of India, Union Bank of India and RCF?Getty Images
    Indian market closed in the red for the third consecutive day on Tuesday. S&P BSE Sensex fell more than 200 points, while Nifty50 closed below 18,700 levels.

    Sectorally, buying was seen in utilities, power, FMCG, and capital goods stocks while selling was visible in metal, IT, telecom, and realty.

    Stocks that were in focus include names like Bank of India which was up nearly 5%, Union Bank of India which gained over 6%, and RCF which was up over 3% on Tuesday.

    Here's what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:

    Bank of India: Buy on Dips

    On the weekly chart, we can see from March 2022 to November 2022, the stock has moved in a range of Rs 40-53 odd levels.

    After consolidating for more than six months, the price breached the pattern on the higher side and made a sharp upward move to hit a fresh 52-week high of Rs 95 odd levels.

    Volumes were quite high during this upward move. As the stock has given almost 100% upside rally from a lower level, we can see some profit booking at this level.

    The Stochastics Oscillator is also moving in the overbought zone. Our opinion is to book some profit at the current level and wait for some correction till Rs 80-odd levels.

    Hence, one can wait for some correction and a fresh long position can be initiated around Rs 80 and more on dips towards Rs 75 with a stop loss placed below Rs 68 on a weekly closing basis. On the upside, we can see a level of Rs 120-140 in the next 8-10 months.

    Union Bank of India: Book Profits

    After making a 52-week high of Rs 55 in November 2021, the price has witnessed some selling pressure as it corrected to make a low of Rs 33.5 odd level.

    The stock has made a Lower Top and Lower Bottom pattern during this tenure. Once the price made a triple bottom around Rs 34 levels, it gave a sharp upside rally to breach its previous high of Rs 55 levels and continued its rally to make three and a half year high of Rs 89 odd levels.

    Volumes were high during this period. As the price has already given more than 100% rally from a lower level, we expect some profit booking from here and will advise to book some profit and wait for some correction till Rs 75 for fresh entry.

    Hence, one can wait for some correction and a fresh long position can be initiated around Rs 75 and more on dips towards Rs 68 with a stop loss placed below Rs 60 on a weekly closing basis. On the upside, we can see a level of Rs 110-130 in the next 8-10 months.

    RCF: Buy
    After making a low of around Rs 25 in April 2020, the stock has given a sharp upside rally to make an 11-year high of Rs 104 odd levels in April 2022.

    The price has made a Higher Top and Higher Bottom pattern during this period. From the high price, some minor correction was seen which made the stock retest the lower level around Rs 68.

    After testing the support, the stock price gave a sharp bull run to make a new high of Rs 132 odd levels. The Stochastics Oscillator is trading in an upward trend along with an increase in volume indicating further upside from here.

    One can buy the stock at the current level and more on dips of Rs 112 with a stop loss of Rs 100 on a weekly closing basis for an upside move to Rs 170-200 in the next 10-12 months.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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