Stocks in Focus – Bank of India – What should investors do with this PSU Bank share – Analyst gives strategy

Stocks in Focus – Bank of India – The shares of Bank of India today ended at Rs 65.30 on the NSE, going up by 0.7 per cent. This stock is in news because of the Board of Directors’ approval raising money through the Qualified Investment Placement (QIP) route.

However, Nilesh Jain Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that the stock is not the best option for retail investors if they are looking for investing in a PSU bank.

The technical analyst said that the Bank of India Stocks do not look strong on the technical charts for now. Instead of taking any long position or fresh positions, investors must think of exiting the stock.

His views were entirely on the basis of technical analysis and had not on the fundamentals of the company.

He said that there is an immediate support on this stock at levels of Rs 60.  

The board approval came on 25 August according the filing by the company to stock exchanges.

The board authorised the opening of the issue on 25 August at a floor price of Rs. 66.19 per equity share.

The approvals are in accordance with the SEBI ICDR Regulations, it said in the filing.

The 'Relevant Date' for the purpose of the Issue and was 25 August at the floor price at Rs 66.19 per equity share, the bank said.

The Bank of India shares attained their 52-week high at Rs 101.40 which it achieved on 19 February 2021. The 52-week low for this stock is Rs 38.20 which it hit on 30 October 2020.

The stock has however, gained over the last 4 trading sessions after seeing declines in six straight sessions.

Meanwhile, on the BSE, the stock ended at Rs 65.70, up by almost 1.2 per cent today from the last closing price.