Bank of India- Short/Medium term trade idea

Scrip Name: BankIndia CMP :145.25	Comment
Trade Check List
PRICE/BOOK & PE value	0.36 & 3.07
Bollinger Band Level	Trading near bottom
5 & 14 day RSI Value	62, 72
Money Flow Index	47
Support Level	140.60, 142.85
Resistance Level	149.5, 153.9
Action	Long

Reasons to buy Bank of India, 

• Low P/B ratio @0.36 and Low PE value @ 3.07.
• RSI value Indicates over-sold condition.
• MoneyFlow Index indicates steady rise in trend  as seen in the chart below.
• Increase in Volume.

News favoring trade,

1. RBI to infuse Rs: 14,000 crores in PSU bank in fy'14.
2. Central bank announced to conduct an open market operation (OMO) to purchase (not sell) government bonds of Rs 8,000 crore from the market on August 23, 2013.
3. RBI allowed banks to hold Statutory Liquidity Ratio (SLR) bonds in Held to Maturity (HTM) category at 24.5 percent of their respective total deposits or net demand and time liabilities (NDTL). 

News Against trade,

1. Fear of downgrading Indian economy.
2. Ever-ending depreciation of rupee value. 

PFB the technical chart for Bank of India,