Is the Current Time Right to Buy Vijaya Bank Shares?

Yes, you can buy Vijaya Bank shares for intraday trading with a Rs 10 stop loss, but do not yet invest for the long term. You may want to check out my post on tomorrow's stock recommendations for more insights.

Merger with Bank of Baroda

Since the merger with Bank of Baroda has already been announced, and the merger ratio has been decided, it is recommended to buy Bank of Baroda instead of Vijaya Bank. Investing in the share market always carries risk. Any decision should be based on market trends, economic scenarios, political situations, and one's risk appetite, which applies to shares of banking companies, including Syndicate Bank.

Current Market Analysis of Syndicate Bank

At present, Syndicate Bank is trading around Rs. 34.00. The bank declared a loss for the financial year 2017-18 and the first two quarters of the present fiscal year. However, it has managed to show operational profit. The bank has inherent strengths, such as a high provision coverage ratio. Management has assured a turnaround within one year. The bank has also strengthened its machinery for reducing stressed assets, which will help in ploughing back the provisions and generating income. Considering these factors, the shares of Syndicate Bank are...

Profitable Performance of Vijaya Bank

Yes, it is a right time to invest in Vijaya Bank shares because, while most banks are suffering from NPAs (Non-Performing Assets), Vijaya Bank is still performing well, showing a very good profit ratio in the last quarter. It is one of the few profitable public sector banks (PSBs).

Technical Analysis and Investor’s Perspective

Let's look at the weekly chart for a more detailed analysis. The 50-day moving average has been breached by the price (arrow no. 1), indicating a possible continuation of the downtrend (see arrows 3 and 4 in the image). A moving average is a benchmark used by large numbers of traders and investors. When the 50-day moving average is breached, it is most likely that the trend will continue in either the up or down direction for a longer duration.

MACD Analysis

The Moving Average Convergence Divergence (MACD) is going down (arrow no. 2), suggesting that you should not buy this stock. However, in the weekly chart, you can see that at the price level of 58.74, there are two strong support elements - pivot point and ichimoku cloud. These elements may give a good bounce back to the price level.

Given the contradictory situation, as a trader, you should wait for a 50-day moving average breakout. Once that occurs, you can take a long position aiming for a target of 68 to 70 with a strict stop loss.