2. Central Bank

GEPL Capital has come recommended to buy Central Bank of India (CBI) on rallies in its March 12, 2012 research report.

CBI is a public sector bank of India. As on March 31, 2011, it operated 3,720 branches and 138 extension counters. Its segments include - wholesale banking operations, retail banking operations, treasury operations and other business.

According to GEPL Capital, CBI has been in a strong downtrend since last fifteen months from its all time high of 212.The rally which has started from the low of 25 has topped out around 212 after a consistent rise of almost twenty one months. Prices have retraced almost 78.64 percent retracement (Fibonacci retracement ratio) in last fifteen months and have come down to new low of 63. Talking about the daily as well as weekly chart, CBI has generated a buy signal on daily chart after giving a close above its long term moving (200-DSMA) that too after a very long period of time and with above average volumes indicating a larger degree trend reversal. Short, Medium and Long term moving average are well placed in line indicating continuous of ongoing trend on the upper side. On weekly charts this counter has got good support around 97-98 zone where its 26-WMA is placed. The daily RSI is showing the value reading of 50 indicating a reversal from short term perspective. Keeping all this parameters in mind one can go long in CBI at current market price for a target of 120 with a stop placing at 96.

Currently, CBI is being traded at 104.70 in the stock market. Its 52 week high has been 155.40 and 52 week low was 63.10. It is currently being traded at an average volume of 484,800.