Stock At Resistance: Short sell Vijaya Bank Future near 55 to 56, Target 51 level, Poor Q3 Results

Vijaya bank has declared its Q3 results on Wednesday and this quarter was a lag for the bank. The Q3 profit of company has declined by 18% to Rs.124 crore against Rs.152 crore in same period last year. Net interest income (NII) declined to Rs.475 crore, major dragger was the NPA (Non performing asset) it stood at Rs.997 crore against Rs.599 crore in the previous year. This was fundamentals, now lets get into the technical analysis of the stock. On charts we see vijaya bank has struck at a resistance zone of 56 level. This level is 61.8% Fibonacci retracement level, as price action is below this level, it will serve as major resistance, So any move towards this level will attract selling pressure. Therefore we advice traders to short sell Vijayabank future in range of 55 to 56 for positional target of 52 and then 51 levels. Stop loss can be placed just above 57.5 level. On daily chart slow stochastic indicator is in overbought zone, so we have this as confirmation, again if you look at the open interest data of vijaya bank february future then there was addition of short positions (Stock was down and open interest was up).
Nifty February future was trading around 5200 level and was facing major resistance there, so even there could be selling opportunity for target of 5150 level. Now traders can learn technical analysis online in just 6 days, contact us on +91 – 99 70 77 77 89.