OBC

Investors with medium-term perspective can consider buying the stock of Oriental Bank of Commerce. The stock bottomed out at the multi-year low of Rs 95 in March 2009. Since then, it has been on a long-term uptrend, forming higher peaks and higher troughs.
While trending upwards, the stock conclusively broke through various resistances at Rs 150, Rs 200 and Rs 240, with good volume.
The stock was however in a corrective phase from the November 2009 peak at Rs 295 that ended at the long-term uptrend-line at Rs 230.
On January 29, the stock gained 6 per cent penetrating the downtrend-line and the 21-day moving average decisively.
It has also managed a close above its 50-day moving average that indicates resumption of its long-term trend.
We notice that there has been an increase in volumes over the past three trading sessions supporting the current up-move.
Both daily and weekly price rate of change indicators have re-entered the positive territory. The daily moving average convergence and divergence indicator is also signalling a buy. The daily relative strength index is hovering at 57 levels and weekly RSI is on the verge of entering in to the bullish zone.
Considering that the long-term uptrend line is intact, we are bullish on the stock from a medium-term perspective.
We believe that it has the potential to trend upwards until it hits our medium-term price target of Rs 320. However, we do not rule out a minor pause at Rs 293. Investors with medium-term perspective can consider buying the stock while maintaining stop-loss at Rs 238. Short-term traders can buy with a target of Rs 293 and Rs 253 as stop.
Follow up: Punj Lloyd (Rs 187.3)
The stock witnessed a decline to Rs 175 and bounced up on Friday, ending the week at our recommended price level. We maintain our bearish view on the stock from a medium-term perspective. Investors can consider selling it with the targets and stop-loss indicated last week.
via BL