Apr 29, 2010

Banking Bulls and Bull Market Biases

                          Many analysts have a tendency to express view contrary to the markets trend. Many times this is only to get attention, show that they are different and are not amongst crowd. OR many times it is because they tend to believe certain sectors, stocks or markets have had 'too much' run up and that's why they tell that it's time certain sector/markets are going to make reversal and so on. Yes when it comes to investing this approach should be given a try but in trading when it is all about making the best of the bull market; people don't benefit from the moves. This happens also due to typical fear of correction in a bull market and fear of buying at 52 week or life time highs. Also when technical analysts start to look at PEs; they tend to fear the further run up and getting long into it.
             Banking space is also the victim of similar attitude amongst some analysts. While many banking stock continue to outperform and make new highs. Our technical team and market circles have identified some banking stocks still looking to have too much steam and virgin for long traders.

Andhra Bank:

United Bank:


South Indian Bank:


DCB Bank:

SBI of Bikaner and Jaipur:


Karnataka Bank:


Vijaya Bank:


Dena Bank:


Syndicate Bank:


Bank of Maharashtra:


Yes Bank:
City Union Bank:


While from the smaller private sector banks Yes Bank, ING Vysya bank, Bank of Rajasthan, City Union Bank, 

Our team also expects that the largecap and sector leaders such as SBI, ICICI BANK, HDFC Bank etc. continue to lead and others follow. The party would be joined by other financial stocks.
         We suggest readers to visit our blog and subscribe to free service and even better paid service to get updates on our research and analysis. Every thing we upload is not possible to give update of because of lack of time and free communication resources. Fundamentals doesn't change overnight but technical, short term market conditions, and news factors change. So anything based on those underlying logics should also change. In the short run it is all about update. To put is shortly short term and recommendations and views are subject to change in technicals, and other short run factors. For joining Premium Paid service @ affordable rates Please Dial-9377008708.

Investing and Dividends: A forgotten Basic

               Why invest in equity shares? Why do we become investors? It is return. Return on our capital. The return while investing into any company is dividend. We get return from or in the form of dividends. But how many people investing today think about dividend? There is an ill-awareness and mis-education going on in markets. Most analyst or investment manager does not emphasize this point. All give targets and calculate the percentage rise. While real investing is aimed at earning dividends and ofcourse the capital appreciation in terms of bonus issues and rise in the share’s quoted price in addition. The return counted by the buy-price and target price is practicable only when the shares are actually sold and till it is only on papers.

Earn RATING GAINS: Buy ICRA for TGT of 1095-1255

Some of the Mumbai based HNI portfolio managers have started accumulating this counter from around 870 levels. 
While also the investors looking for cash flow and such business model as CRISIL LTD. are not betting on this stock. 
The fundamentals, business model, and financial are quite sound. The PE expansion in CRISIL LTD. will also result in PE expansion of ICRA from current levels.
 This could not be pure value buying but is as We mentioned a Portfolio Managers' Pick. 

Buy ICRA with A TGT of Rs.1095, and 1255.

Disclaimer: We have this stock in our Quarterly PMS Members' Accounts.
Posted on Thursday, April 29, 2010 | Categories: