CMP 345 BSE 15454
- The 5 year Price Charts indicate a consolidation in the short term but with a bit of a negative bias. I would say that the Stock, in the short to medium term or in the absence of any Fundamental triggers such as a Rate Cut, should be range bound in the 322 to 399 range. Once it trades consistently above 399 levels we could see a trend reversal from negative to positive.
- Rock solid multi year support is at 302 levels and is unlikely to be tested any time soon.
- On the upside, first resistance is at 371 and then a substantial one at 399 which , as I said earlier , it needs to decisively break, for confirmation of uptrend.
- Very briefly, I would say that Corporate Performance has been good, nothing earth-shattering but steady.
- Valuations at CMP look pretty OK; the main plus is , of course, that the Asset Quality of the Bank is good and has been steadily so in the past as well. Given the current concerns over possible Asset Quality deterioration in the Banking Space, this indeed is a big material as well as sentiment positive for the Scrip.
- All in all, even though I dare say there are better Banking Scrips to own, but at CMP and possible 5-10% dips , KVB, in my opinion would be a good addition to one's long term Portfolio.
thanks for the valuable comments
ReplyDeleteWhat about axis bank? its falling like crazy .below 800 now. can this go down further?
ReplyDeletefundamentally sound stock, so no reason to worry; I feel it is more a sentiment thing than anything else as also that Axis and HDFC BANK had corrected relatively lesser earlier and are now sort of catching up. The valuation gap between ICICI Bank and Axis seems to be closing. While there could be more downside for both Axis and HDFC Bank, I feel ICICI Bank is more or less bottommed out, and so has SBI. In case u are a long term Axis Bank investor, I suggest u hold on and could add more in nibbles on every 5% drop (god forbid!) starting CMP.
ReplyDeletewhat would be the best bank to buy currently
ReplyDeleteI would say ICICI Bank but to be entered in phases because downsides are possible in this kind of Market.
ReplyDeletewudnt yes bank be a better pick
ReplyDeleteYES BANK too is a top pick but downside is poaaible; best buy around 200 levels or if u are a long term investor and can ride the volatility then u could buy a little now and then average out on all 10-15% dips. ICICI Bank and SBI are the ones which seem to have bottomed out.
ReplyDelete