Sell Bank of India With Stoploss Of Rs 322: Ashwani Gujral

Sell Bank of India With Stoploss Of Rs 322: Hitendra VasudeoStock market analyst Ashwani Gujral has suggested investors to 'sell' Bank of India stock as there are full chances of a downward trend in this stock.

According to Mr. Gujral, investors can sell the stock with a stop loss of Rs 322 to achieve a target between Rs 280 - Rs 270.

Today, the shares of the company opened at Rs 300 as against its last closure of Rs 305.30 on Friday (July 10) on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 57.26 & 5.26 respectively. The share price has seen a 52-week high of Rs 368 and a low of Rs 179.60 on BSE.

It is advantageous to sell the stock at the said level as the counter is under huge pressure. If the stock fell below Rs 266, it may fell further.  

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

The bank’s directors on June 24 have given their nod to raise Tier I and Tier II capital via issuance of innovative perpetual debt instruments, preference shares, Tier II bonds and upper tier ii capital bonds to the extent required upto a maximum extent of Rs 130.06 billion at the right time.

To swell its presence in the East African nation, Bank of India (BoI) said that it is eyeing acquisitions in Kenya.

BoI has decided to get hold of a bank to tap the high-margin business and support the increasing Indian investments and trade.

The bank already has four divisions in Kenya. It also said that the business is very advantageous since it brings in high margins, in India the margin between deposits cost and yield on advances is around 3-4%, and the same is 10-11% in Kenya.