The short-term outlook for the stock of Bank of India is bearish. The stock had tumbled over 6 per cent on Tuesday signalling doward momentum. The 8-Day Moving Average (MA) has crossed below the 100-Day MA strengthening the bearish case and indicating limited upside move. The immediate resistance is at ₹73.50. Above that, a much higher resistance is around ₹77. The stock price can fall to ₹62 over the next two-three weeks. Traders can go short at current levels and accumulate on the rise at ₹72.50. Keep the stop-loss at ₹74.50. Trail the stop-loss down to ₹69 as soon as the stock falls to ₹67.50. Move the stop-loss further to ₹68 when the stock touches ₹66 on the downside. Book profits at ₹65.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)