Bank of Baroda shares halt 3-day fall as total advances jump 19%; here's what analysts say

Shares of Bank of Baroda (BoB) climbed today after the lender witnessed a 19 per cent year-on-year (YoY) jump in total advances for the March quarter. The stock rose 4.51 per cent to hit a day high of Rs 173.70 over its previous close of Rs 166.20.

"Total advances of the bank grew by 19 per cent YoY and 5.4 per cent QoQ to Rs 9.74 lakh crore as of March 31, 2023. Total deposits of the bank grew by 15.10 per cent YoY and 4.70 per cent QoQ to Rs 12.04 lakh crore," BoB stated in an exchange filing.

"As of March 31, 2023, the total business of the bank crossed Rs 21 lakh crore milestone. Total business of the bank grew by 16.80 per cent YoY to Rs 21.77 lakh crore," it further stated.

On the technical front, support on the counter could be seen at Rs 166, followed by Rs 165 and Rs 160 levels, analysts said.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "Bank of Baroda is hovering in a broad range of Rs 155-175 zone and a decisive breach beyond the same could dictate the near-term trend in the counter. On the technical chart, the stock is hovering just above all its significant EMAs on the daily chart, with immediate support placed around Rs 165-160. On the flip side, an authoritative closure above the mentioned range could open the potential of the next leg rally in the near future."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At the current juncture, the stock is facing a major hurdle near Rs 174-175 levels. A decisive close above Rs 176 level will trigger a fresh rally toward Rs 185. As of now wait and watch."

AR Ramachandran from Tips2trades said, "Bank of Baroda has strong resistance of Rs 175 on the daily charts. A daily close below the support level of Rs 166 could lead to targets of Rs 160-153 in the near term."

The stock was last seen trading higher than the 5-day, 20-, 50- and 200-day moving averages but lower than the 100-day moving averages. The counter's 14-day relative strength index (RSI) came at 58.07. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 7.73.

BoB has an average target price of Rs 184, Trendlyne data showed, suggesting a potential upside of 8.01 per cent. The scrip has a one-year beta of 1.51, indicating high volatility.

In a separate development, the lender has revised the marginal cost of funds-based lending rate (MCLR), effective April 12, 2023. The new MCLR from tomorrow would be 7.95 per cent for overnight, 8.20 per cent for a month, 8.30 per cent for three-month tenure, 8.40 per cent for a six-month period and 8.60 per cent for a year.

Meanwhile, Indian equity benchmarks extended their gains for the seventh straight session in late deals today, led by gains in banks, financials, metal, energy and consumer goods.

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