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I have bought Bank of Baroda shares at ₹150. What is the long-term outlook for this stock?
Vimalkirti
Bank of Baroda (₹234.45): The stock has been in a strong uptrend since November 2020. This uptrend is intact. There is no sign of a reversal yet. Support is in the ₹210-200 region. Bank of Baroda share price has room to rise to ₹270 over the next two-three quarters. The region around ₹270 is a very strong long-term trend resistance. As such, the chances are very high for the current uptrend to halt around ₹270. A fall from there may have the potential to reverse the trend. That move can drag Bank of Baroda share price down to ₹200 initially.
The price action thereafter will need a close watch to see if the stock price is extending the fall beyond ₹200 or reversing higher again. If you want to buy this stock now, then you have to play it for the short term. Buy now and accumulate on dips at ₹225. Keep the stop-loss at ₹210. Trail the stop-loss up to ₹240 as soon as the stock moves up to ₹252. Move the stop-loss further up to ₹258 when Bank of Baroda share price touches ₹263. Exit the stock at ₹270.
I have shares of Yes Bank purchased at ₹107. What is the outlook for this stock? Can I sell the shares now? Or is it worth averaging now by buying more at the current levels? if I have to wait, then how long will it take for the stock to go up to my purchase price?
R Srikanthan, Chennai
Yes Bank (₹23.97): The short-term trend is up for the stock of Yes Bank. The stock made a low of ₹14.10 towards the end of October last year and has moved up very well from there. This upmove has room to test ₹27 in the next few weeks. But what happens thereafter will be very crucial, because the level of ₹27 is a very strong trend resistance. Failure to breach ₹27 and a reversal thereafter can turn the outlook bearish. In that case, there is a danger of the stock price falling back to ₹20 and lower.
A decisive break above ₹27 and a strong follow-through rise thereafter will only boost the bullish momentum. If that happens, then Yes Bank share price can go up to ₹40. From a big picture perspective, the share price going back to your purchase price looks impossible right now. Also, considering the limited room accumulating at the current levels is also not a good option to be considered. Taking all these factors into consideration, we suggest you to exit this stock.
I am having shares of Fino Payments Bank which were allotted in the IPO. Currently, the share price is almost half the purchase price. What should I do now? Can I continue to hold the stock or accept the loss and exit?
Awanish Rupak
Fino Payments Bank (₹292): The stock has been in a strong downtrend. Last week, the share price had risen back sharply. But that does not give any sign on a trend reversal. Resistance is around ₹305 which, if broken, will clear the way for Fino Payments Bank share price to rise towards ₹390. Failure to breach ₹305 and a turn-around from there can drag the share price down to ₹235-230 over the next three months. The region around ₹230 is a strong trend support that can halt the current downtrend. A fresh leg of rally from the ₹235-230 support zone will have the potential to take the stock up to ₹400 over the long term.
To go back up to ₹500-550 levels, the stock has to breach ₹400. That would take a very long time. You can consider two options. One you can exit at the current levels itself. Or if you want to minimise the loss, then you can wait and exit at ₹380. But this could be a very long wait. So, considering the time factor, our suggestion will be to exit now and reinvest the sale proceeds in some other stock that looks very strong on the charts.
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