Bank of Baroda becomes second PSU to hit Rs 1 trillion; Shares surge 3%.

The stock we are discussing is the Bank of Baroda, which is engaged in the provision of commercial banking services. It operates through the following segments: Treasury; Corporate and Wholesale Banking; Retail Banking; and Other Banking Operations. The Treasury segment includes the entire investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate and Wholesale Banking segment comprises the lending activities to borrowers. The Retail Banking segment comprises borrower accounts. The company was founded by Sayajirao Gaekwad III on July 20, 1908, and is headquartered in Vadodara, India.

Bank of Baroda is a nearly Rs 1,00,000 crore market cap bank, with Foreign Institutional Investors (FIIs) holding a significant stake of more than 10%. The bank has delivered strong profit growth of 57.6% and sales growth of 15% CAGR over the last 5 years.

Technically, the stock is consolidating in the range of Rs 189.35 on the higher side and Rs 172.80 on the lower side since May 02, 2023. If we draw the trendline from the high of May 02, 2023 (Rs 189.35) and May 17, 2023 (Rs 190), we will get the breakout trendline of the consolidation. Interestingly, the stock witnessed strong buying interest in the last trading sessions, surging more than 5% in 2 trading sessions with strong volumes, which is above the average of the last 30 days. This trading action resulted in a close above the breakout trendline and registered a breakout of a continuation pattern with volumes of more than 27 million shares.

The minimum possible target for this pattern will be around Rs 230, which is more than 20% of the breakout level (Rs 190). Therefore, swing traders and short-term investors can consider adding this stock to their watchlist.