Shares of state-owned lender Bank of India (BoI) fell sharply on Tuesday amid heavy volumes. The stock dived 6.28 per cent to settle at Rs 70.85 over its previous close of Rs 75.60. Around 43.95 lakh shares changed hands today on BSE, which was more than five times higher compared to BoI’s two-week average volume of 8.04 lakh shares. Turnover on the counter stood at Rs 31.67 crore, commanding a market capitalisation (m-cap) of Rs 29,073.77 crore. The PSU lender had gained 41.28 per cent in the past year. However, it has declined 22.48 per cent on a year-to-date (YTD) basis.
On the earnings front, BoI reported a 12 per cent rise in its December 2022 quarter (Q3 FY23) profit, at Rs 1,151 crore against Rs 1,027 crore in the same period a year ago. Total income increased to Rs 14,159.60 crore in the latest December quarter from Rs 11,211.14 crore in Q3 FY22. Net interest income improved by 64 per cent to Rs 5,596 crore against Rs 3,408 crore in Q3 FY22.
Technical analysts suggested that support on the counter could be seen at Rs 61, followed by Rs 62 and Rs 68 levels. BoI is expected to counter resistance at Rs 75-76 levels, they said.
Sneha Seth, Derivatives Research Analyst at Angel One, “The PSU banking stocks had a fabulous run of late, but certainly, this financial year seems to be a bit unluckily for them, at least for the time being. BoI specifically has witnessed a sharp decline since mid of January series from Rs 100-plus-odd zone and now trading around the vicinity of Rs 70. As far as levels are concerned, immediately Rs 68-odd zone should be acting as support and breaching of same can even drag this counter towards Rs 58-60 levels. On the upside, any decisive move beyond Rs 75-76 should improve the chart structure for the near term.”
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, “Bank of India’s stock is showing pressure on the higher levels. It has massively broken neckline support at around Rs 75 level. With lower highs and lower lows formations, the counter is trading below its all-important moving averages (9, 20, 50, 100). On the higher time frame, there is a breakdown of an inverse head and shoulder formation, which suggests much more potential on the lower side till Rs 60–63 levels. On the upside, Rs 75 will be an immediate hurdle. On the downside, the 200-DMA of Rs 62 is a strong support level.”
AR Ramachandran from Tips2trades said, “Bank of India looks very bearish and approaching oversold levels on the daily charts with next support at Rs 61. Investors should avoid buying till a daily close is above the resistance level of Rs 76.”
Meanwhile, Indian equity benchmarks ended lower for the third straight day today ahead of the minutes from the US Federal Reserve’s meeting amid fears of a higher-for-longer interest rate regime. The 30-share BSE Sensex pack edged 19 points, or 0.03 per cent, down to settle at 60,673. The broader NSE Nifty index fell 18 points, or 0.10 per cent, to close at 17,827.
Also read: Why NTPC shares are the top Sensex, Nifty gainers today
Also read: Stock market trading hours may be extended up to 5 pm: Report