In the last month, RBI policy has been declared and the repo rate increased by 0.5. Increasing the repo rate is a plus point for banks and NBFCs. Due to inflation RBI can increase repo in the future so I am bullish on banking and financial stocks. When we look at the banking sector then most of people prefer private banks because they are strong as per valuation, service, and profits. However, as retail investors our focus is on small-price shares. Keeping this point in mind I found one PSU bank which is looking good on chart and fundamentals.
Weekly Chart: Bank of Maharashtra made a high of 32 in June 2021 and started to fall from that point. After showing a 50% correction and it touched a level of 15. Now share price is showing some strength for the upside. Recently, on the weekly time frame stock has broken its resistance of 18.90 and confirmed Inverted H&S. Inverted H&S is trend reversal confirmation and as per my view, this breakout happened due to Big Bulls. The current share price is around 19.80 and I am bullish from current levels. I am expecting up moves till 22-23 if the stock crosses these levels then it can show 30-35.
The company has a market capital of around 13300 Cr. and quarterly net profits are increasing. From last 3 years, net profits are increasing so the company is doing well. The company is focusing on business expansion which is a plus point for us. Also, the promoter has 91% share holding.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
20 to 28.50 it is almost 42.5% gain
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