Low Beta Stock: Bank of Maharashtra trades at its 4-year high!

Bank of Maharashtra, after spending at least three years in consolidation, is attempting to stage a comeback even as it trades at prices not seen since July 2017.

It is perceived that any stock that makes a move after 1-3-5-8-10-15 years of consolidation, doesn’t just stop being a doubler or a tripler, it roars much more. The longer the consolidation, the better can be the price upmove. Investors have seen glaring examples in the form of Praj Industries in the current market scenario as well as in Tata Consumer Products Ltd from 2008 to 2016, when the stock remained flat for almost 8 years and thereafter, multiplied its price by 5.5 times. Praj Industries has also multiplied in its stock price several times over since its breakout after almost 10 years. 

Similarly, Bank of Maharashtra, after spending at least three years in consolidation, is attempting to stage a comeback even as it trades at prices not seen since July 2017. Bank of Maharashtra, trading at Rs 29.20 per share, is up by 183.41 per cent in one year and is also, up by 113 per cent on a YTD basis. In one month, the stock has gained by nearly 20 per cent; thus, catching investors' attention.

Besides, the stock is trading close to its 52-week high of Rs 29.75 per share and during Friday’s trading session, a daily MACD crossover appeared in the counter thereby, hinting at some gains in the near terms. The stock witnessed a jump of over 13.62 per cent with rising volumes on Friday. Clearly, its advantage bulls when it comes to Bank of Maharashtra.