ICICIdirect recommends buying Bank of Baroda in the range of Rs 919-902 for a target of Rs 1,055 with a stop loss below Rs 848 on a closing basis.
Commenting on the investment rationale, the stock broker said, "Recent consolidation during August 2014 saw the stock forming a basing pattern around Rs 850. Importantly, the entire consolidation panned out near the confluence of the crucial support of the 38.2% retracement of the July 2014 up move from Rs 771 to Rs 919 and 50 days EMA currently placed at Rs 876 levels, signaling the overall bullish price structure in the short-term.
Subsequently, during today’s trade, the stock steered past the falling trend line joining the previous high of May 2014 (991) and August 2014 (931), which is currently at Rs 918. Therefore, we believe the stock offers a fresh entry opportunity with a good reward/risk setup to ride the next up move. The stock is set for its next up leg. It is likely to test the levels of Rs 1,055 in the short-term."
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