Bank of Baroda surges by over 10 per cent; RSI suggests bullish momentum

The stock of Bank of Baroda has given a downward sloping trendline breakout as on November 26, 2020 and thereafter, witnessed nearly 35 per cent upside in just 11 trading sessions.   

However, after registering a high of Rs 68.25, the stock has witnessed a correction. The correction is halted near the 50 per cent Fibonacci retracement level of its prior upward move (Rs 46-Rs 68.25) and coincides with the 200-day simple moving average level. The stock has formed a spinning top candlestick pattern as of December 22, 2020, and thereafter, marked the sequence of gradual higher tops & higher bottoms.   

On Tuesday, the stock surged above its prior swing high of Rs 68.25 along with a robust volume. Further, the stock has also formed a sizeable bullish candle.   

Interestingly, in the recent corrective phase, the RSI has bounced exactly from the 60 mark, which indicates that the stock is in a super bullish range as per the RSI range shift rules. Currently, the RSI is quoting at 72.22 and it is in a rising mode.   

The derivatives data is also suggesting a long build-up in the stock. On Tuesday, January series stock future of Bank of Baroda was seen with 1,09,62,900 addition of open interest, which is 18.53 per cent addition in the open interest. It indicates that there is a long build-up in the market. January month’s current open interest is 7,01,29,800. For January expiry, the open interest wise put-call ratio (PCR) is at 0.53.   

Going ahead, the stock has strong support in the zone of Rs 65-Rs 63, while on the higher side, major resistance is placed in the zone of Rs 75-Rs 76 levels.  

On Tuesday, the stock of Bank of Baroda closed at Rs 70.75 per share, surged by 10.12 per cent. The stock opened at Rs 63.90 per share and hit an intraday high of Rs 71.70 and a low of Rs 63.10 per share on NSE.