Oriental Bank of Commerce (OBC) corrected sharply from the recent peak of Rs179 in early January 2009 to the present levels. On the weekly chart, the stock has formed a bearish engulfing pattern suggesting further weakness.
On Friday, the stock fell below its crucial support levels of Rs108 and also closed well below its near and short term averages. The daily MACD is already in sell mode, suggesting build-up of momentum on the downside. Bollinger band is also indicating a breakout on negative side.
Based on above events, we recommend traders to SELL the stock at current levels and on rallies to levels of Rs105 for target of Rs97. A stop loss of Rs108 is recommended on all short positions.