Canara Robeco Mutual Fund is bullish on this banking stock. Should you buy?

According to stock market experts, Bank of Baroda share price is in ₹165 to ₹190 range and it is trading sideways to upward. Hence, one should maintain ‘buy on dips’ strategy in regard to this PSU bank share as the stock has strong support at ₹165 apiece levels. Experts went on to add that PSU banks are expected to continue in uptrend for short to medium term as overseas lending for large corporates has become dearer and they are expected to come back to Indian banking system. This is expected to fuel PSU banks’ including Bank of Baroda’s balance sheet northward. They advised positional investors to look at any dip in the stock as buying opportunity for short to medium term.

Advising positional investors to buy and hold Bank of Baroda stocks, Saurabh Jain, Vice President — Research at SMC Global Securities said, “After ease in US dollar in recent months, overseas lending has become dearer for large corporates. So. such corporates are expected to come back to Indian banking system for credit line that is expected to boost margins and balance sheet of Indian banks including Bank of Baroda. So, market is speculating strong quarterly numbers from the PSU bank in upcoming quarters.”

Expecting further rally in Bank of Baroda shares, Sandeep Pandey, Ex Deputy Vice President at HDFC Bank Ltd said, “The Government of India (GoI) initi9attive to handle bad loans of state-owned banks and other Indian banks via ARC mechanism is going to have a big positive impact in long term. This ARC mechanism is going to put PSU banks at par with the private lenders in coming times. This is the reason why state-owned banking stocks have delivered robust returns in last few months and now mutual funds and other institutional investors have started to look at such banking stocks.”

On Bank of Baroda share price chart, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “Bank of Baroda share has given an awesome move in the last 4 months, and now it is in consolidation, with a little bit of profit booking seen in the last few sessions. Technically, Bank of Baroda is in a consolidation phase. It is taking support from the lower trendline and 50-SMA moving averages on the daily chart. It is facing resistance at around Rs. 190 levels; above this, we can expect a rally till 200+ levels in the near to short term, while on the downside, Rs. 165 is the major support.”

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Bank of Baroda share price is quoting around ₹178 apiece, near 2 per cent below its close price after the end of Tuesday session.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.