Stocks to watch: IOB, Central Bank - Buy or wait? Check MONEY MAKING investment strategy from share bazaar expert
Indian Overseas Bank Share Price - Indian Overseas Bank shares (IOB shares) today hit their 52-week high on the intraday basis and were trading at Rs 25.70 on the NSE, up by almost 9 per cent at 11:05 am. The IOB shares hit 20 per cent circuit on Monday. The rally has been on the back of the privatisation news doing the rounds, Technical Analyst Nilesh Jain
Stocks to buy today: The stock markets have been moving with new vigour over the last two trading sessions. At 15,854.15, Nifty 50 was trading up by almost 0.7 per cent or over 100 points. While most sectoral indices were trading in the green, Nifty PSU bank was also up by over 1.2 per cent. But two stocks that have been the biggest runners were Indian Overseas Bank (IOB) and Central Bank. Know what the trigger behind the current rally is and if the investors should make fresh positions.
Indian Overseas Bank Share Price - Indian Overseas Bank shares (IOB shares) today hit their 52-week high on the intraday basis and were trading at Rs 25.70 on the NSE, up by almost 9 per cent at 11:05 am. The IOB shares hit 20 per cent circuit on Monday. The rally has been on the back of the privatisation news doing the rounds, Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said.
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The 52-week high for this stock is Rs 27.40 while 52-week low for IOB shares price is Rs 8.50 which was attained on 16 October 2020. After closing at Rs 19.75 in the previous week, this stock has seen a good rally and the shares have moved with large volumes. On Monday, over 6.5 cr shares were traded with number of trades amounting to 59,545 at the end of the trading session.
IOB Shares – What Nilesh Jain recommends?
Jain said that the movement in this counter has been primarily on news and it was quite likely that the current rally may be followed by some correction. This stock has been an underperformer among the PSU Banks, he said. The stocks have seen a base formation at levels around Rs 23.5 which acts as support.
He advises against any fresh long positions. For investors who are currently holding this stock, he said that a target price of Rs 30 is expected. He puts the stop loss at Rs 23.50. This is with a 3-4 week view, he added.
Central Bank Share Price - The Central Bank stock price today hit a 52-week high as well on the intraday basis. The Central Bank shares were trading at Rs 25.60 around this time, going up by almost 5.6 per cent. The 52-week low of this stock is Rs 10.10 which it attained on 16 October 2020.
This stock has seen almost a same momentum as of Indian Overseas Bank. Again, the trigger for this stock is the news around its privatisation, Jain said. Central Bank stocks hit a 20 per cent circuit on Monday. Over 7.6 cr shares traded on the NSE amounting to 68,591 trades at the end of the trading session.
Central Bank Shares – What Nilesh Jain recommends?
Jain said that the investors should keep a watch on this counter as well as the current movement is triggered by news and the stock could see correction, going forward. He said that any fresh position should not be made as the stock has had a good two-day rally. Investors currently holding this stock should continue with it for a target price of Rs 30-35.
He said that a base formation has taken place in this stock at Rs 23 which should be treated as a stop loss.
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