BoB may test Rs 140, expect correction in Tata Steel: Rajat Bose

Rajat Bose of rajatkbose.com told CNBC-TV18, "Punjab National Bank (PNB) could be heading for double digits because it is falling on higher volumes and it is a downtrend that is not even beating its five day moving average, little on the 13 day moving average after which it started falling in a steady manner. So, probably target of Rs 99 could well be there going forward. I have checked up most of the PSU banking stocks, they are a gone case as far as trading them on the long side is concerned. I am not too sure as to what is happening to them in the sense that whether there would be any kind of a chance of a recovery anytime soon because the NPA recognition is a big problem." "In Bank of Baroda (BoB), Rs 140 is definitely on the cards because it has fallen on higher volumes. Yesterday, although it closed at Rs 148, it could be heading to Rs 140," he said. "However, the surprise on the pack in today’s downside scenario could be a stock that performed brilliantly yesterday which is Tata Steel. The stock is heading to test its 200 day moving average around Rs 280 and when you test 200 day moving average after breaching it on the downside for a very long time and you are testing it for the first time that is actually an occasion to sell because even if it were to post an uptrend it would give a correction from the 200 day moving average. In this case, I am expecting a correction in Tata Steel to about Rs 255-257 kind of levels. The level of Rs 265 would be an initial support but at current level not a buy in Tata Steel. You may buy Steel Authority of India (SAIL) but not Tata Steel."