Avoid getting into Bank of India for long or medium-term: Deepak Mohoni

Deepak Mohoni, director, trendwatchindia.com, in a chat with ET Now talks about Bank of India and IndusInd Bank

What is your take on Bank of India and IndusInd Bank?

They are moving today a bit counter to their longer term and medium term trends. In fact a lot of stocks are doing that today. You look at Bank of India, it has made a good move today but if you look at the last 7-8 weeks when the market has been going up, this stock is actually in negative territory or flat at best.

IndusInd Bank has been a pretty strong mover over this uptrend and in fact the entire bull market. So today is the sort of day we are seeing a lot of profit taking in stocks, which have done well over a two-month period but the stocks, which have lacked or not done well at all, they are the ones which are gaining today - the real estate for example, Bank of India. So we are seeing exactly that.

This would mean essentially for an investor that there is not a good reason to get into Bank of India long term or medium term. Short-term trader could avail of this move and somebody wanting to switch out of the stock could even use this move to exit at a slightly higher level and may be move to some other bank.