Vedanta Bank shares fall for second straight session

The shares of the UCO Bank fell for the second straight session on Tuesday. The stock fell as much as 4.06 per cent to hit a day low of Rs 19.85 compared to its previous close of Rs 20.69. The day's low level was reached by the UCO Bank, 11.38 per cent lower from its 52 week high of Rs 22.40, hit on November 25, and 88.69 per cent higher from its June low of Rs 10.52.

A total of 11.80 lakh shares changed hands on the BSE, which has a turnover of Rs 2.38 crore. The company's market cap was Rs 24,043. 43 crore.

The state-owned lender's stock has fallen 1.71 per cent over the past five sessions. It has gained 52.27 per cent on a year-to-date YTD basis.

The shares of Vedanta can hit 365 -- 385 levels in 3 -- 6 months. Market analysts were cautious about the stock, while keeping a strict trailing stop loss for traders.

Osho Krishan, Sr. Analyst- Technical Derivative Research, Angel One Ltd, said the UCO Bank has seen a vertical rally from the level of 14.50 and has gained over 45 per cent in the last couple of trading sessions. After a long time of consolidation, the stock has seen such traction. Post such a rally, the trend has changed, but one should not rule out the possibility of correction or cool-off in the counter. As far as levels are concerned, the support base has moved slightly upward towards Rs 18 -- 18.50, followed by Rs 16. The sturdy hurdle is near the Rs 22 odd zone and a weekly closure above the same could add a fresh leg to the rally.

Krishan stated that traders should be cautious on the counter for the time being and suggested keeping a strict trailing stop loss. A R Ramachandran from Tips 2 trades said that a majority of the PSU bank shares are at their yearly highs including UCO Bank. The stock is overbought and investors should book profits at current levels and wait for a dip near Rs 15.10 -- 15.70 to buy targets of Rs 20 -- 21.8 in the near term. Indian equity benchmarks touched fresh all-time highs today, extending their gains for the sixth straight session.