Bank of Baroda Ltd, which has performed largely in line with the benchmark index in the last 1 year, looks poised for an upmove that could take it above Rs 100 in the next 2-3 months, suggest experts.

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The banking stock with a market capitalization of over Rs 43,000 crore hit a fresh 52-week high of Rs 108 on 10 November, and since then it has been under pressure. The stock took support near 77.05 and then bounced back to reclaim 200-DMA placed at 82.

Theoretically, if the stock trades below its long-term moving average – the trend is usually considered as negative, and vice-versa if it trades above the 200-DMA.

The recent price action pushed the stock above its critical resistance of 200-DMA that suggests further upside towards Rs 105 is possible in the next 2-3 months, suggest experts.

Technically, the stock is trading below the short-term moving average placed at 30,50 and 100-Days Moving Average.

The stock has witnessed a decent rally from 78 levels during the month of October and November 2021 to touch the peak level of 108, and thereafter, slipped considerably to recently attain the lowest level of 77.

“There has been some consolidation phase to signify bottoming out of the stock and has maintained the zone near 77-80 as a strong support base. Currently, a positive candle pattern in the daily chart moving past the significant 200DMA level of 82 has improved the bias and made the chart look attractive for a decent investment trade setup,” Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher Pvt. Ltd, said.

“The RSI also has picked up from the highly oversold zone and established a trend reversal to signal a buy in the midcap PSU stock thus justifying our view of a positive bias recommendation,” she said.

Parekh suggests investors buy and accumulate this midcap stock for an upside potential target of 95-105 keeping the stop loss near 77 levels for a time frame of 2-3 months and expect for a decent return from the investment.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)