Why Bank of Baroda, Coforge are expected to rise in coming week
Bulls remained at the helm as the benchmark Nifty closed well above the crucial resistance level of 17,250. On the daily chart, the index has moved above the recent consolidation, suggesting a rise in optimism. The momentum oscillator RSI has entered a bullish crossover. The trend is likely to remain strong as long as it remains above 17,200. On the higher end, the next important level is 17,500–17,600, where bears will be waiting.
The BANK NIFTY index witnessed strong buying on the last of the week, surpassing the hurdle of 40,000. The outlook remains positive for the upcoming week as long as the index stays above 40,000 levels. One should have a buy-on-dip approach strategy with likely targets of 41,000/41,700 on the higher end. The momentum indicator RSI has also given a positive crossover on the weekly chart which confirms the buy signal.
The NIFTY PSU BANK index found strong support near the previous gap and witnessed a sharp reversal. The momentum indicator RSI has given a breakout from a falling trend line, confirming the buy reversal. The index is likely to touch the falling channel’s upper end, indicating a target of 4,000. The lower-end support is placed at 3,600-3,550 which will act as a cushion for the bulls.
Bank of Baroda
The BoB stock has formed a cluster of support on the lower end of ₹160-158 which will act as a cushion for the bulls. There are multiple bullish candlestick patterns on the weekly chart which confirms the strength of the stock. The stock on the lower time has found support on the rising trend line and also a falling trend line breakout. The positive momentum is likely to push the stock higher toward the level of ₹180/195.
Coforge
The stock has moved up after a prolonged downward trend on the daily chart, suggesting a rise in optimism. The momentum oscillator is in the bullish crossover. The immediate resistance is visible at ₹3,850, a decisive move above 3850 may induce a rally towards ₹4,100. On the lower end, support is placed at 3,700.
The author is Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
Disclaimer: The views and recommendations shared by the analysts are their own and Mint is not responsible.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.