Apr 23, 2017

One banking Sector Stock You Should Buy Right Now !

One banking Sector Stock You Should Buy Right Now !
Karur Vysya Bank Research Report 

Stock Name : Karur Vysya Bank Ltd.
CMP : 118
Recommendation
Strong Buy With Short, Medium Term Upmove, Also positive for more than 1 year holding
Fundamental View: 
However, relatively small but this bank has almost a Century long history. The bank has grown its topline about 50% in last 5 years to more than 5000 crores which not many banks of its size has been able to do and remained stuck where they are.
Even more important is the staggering net profit the bank is showing from year on year. Its stock is trading at around 118 which is about PE of 12 only which should be at least double looking at many perspective including the peer valuation trend in the market right now.
At times when the banking sector is fraught with NPAs and most banks are not making any money, stocks of banks like DCB, City Union, Indian Bank and a couple of other out of a long list of banking names are enjoying good buying and valuations. Looking at that KVB is ideal candidate for up to 100% rise to reach 20 plus Price Earnings ratios which it should command in terms of not just prevailing peer comparison basis but also on many other counts.

Technical View: 
After all round banking stocks rally in 2009, 2010 most banking stocks fell in November 2010 and struggling since then to rise up. But this one didn’t fell as much from its 100 plus levels and risen up swiftly from its previous break out level of 60 and went up back to 115 levels again.
It made new high in 2012 breaking 2010 high then again made new high in 2015 end. And now it clearly looking like making a new high again very shortly and swiftly as it is already at its previous which is lifetime high.
The stock will shop up to 200 once closes above 120 with volume which seems to be very clear looking at the given fundamental and technical views.
The stock may face small hick up around the present levels and can retract to 110 or 100 at maximum on account of profit booking or resistance facing at old highs but will bounce back more strongly.


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Apr 20, 2017

Apr 17, 2017

What To Watch Out Today 17 April 2017 For Possible Market Action

Market News
The Nifty is likely to start on a flat note on Monday, tracking muted handover from Wall Street. The index closed below its crucial resistance level of 9,200 and its 5-days exponential moving average (DEMA), 10-DEMA, 13-(DEMA), and 20-DEMA.
Geopolitical tensions, along with Q4FY17 earnings, will continue weight its impact on the market sentiments this week. During the week, Tata Consultancy Services (TCS) will declare its numbers on Tuesday, while IndusInd Bank and Yes Bank will announce March 2017 quarter results on Wednesday.

Hindustan Zinc and MindTree will announce March quarter earnings on Thursday. Cement major ACC and private sector banking major HDFC Bank are scheduled to release Q4 results on Friday.
Here are top cues from domestic and international markets, which could have a bearing on D-Street.
Finance Ministry nod to to 8.65% interest on EPF
The Finance Ministry is believed to have permitted the Labour Ministry to go ahead with 8.65 percent rate of interest on employees' provident fund for 2016-17, which will benefit over four crore EPFO members.
The finance ministry in its communication to the labour ministry has, however, put a rider that the interest rate should not result in a deficit for the retirement fund. This will enable the Labour Ministry to provide 8.65 percent rate as decided by the Employees' Provident Fund Organisation (EPFO) trustees.
SEBI set to block P-Note route for NRIs
The regulator plans to put in place a clear bar on non-resident Indians (NRIs) and entities owned by them and resident Indians subscribing to participatory notes, a move aimed at preventing possible round-tripping or laundering of black money, said a report.
The Securities and Exchange Board of India (SEBI) is set to tweak its regulations to this effect at its upcoming board meeting on April 26 after the finance ministry recently wrote to the regulator.
Wall Street ends lower
US stocks ended lower for a third straight day as investors weighed earnings reports from big US banks along with geopolitical tensions. Investors have turned to safe-haven assets like gold throughout the week due to geopolitical tensions and news of a massive bomb being dropped by the United States in eastern Afghanistan on Thursday added to uncertainty.
The Dow Jones Industrial Average fell 138.61 points, or 0.67 percent, to 20,453.25, the S&P 500 lost 15.98 points, or 0.68 percent, to 2,328.95 and the Nasdaq Composite dropped 31.01 points, or 0.53 percent, to 5,805.15.
SGX Nifty
The Nifty futures on the Singapore Stock Exchange were trading 5 points lower at 9,150 indicating a flat opening for the domestic market.
US Dollar falls
The US dollar fell Friday following remarks by US President Donald Trump that the currency was getting too strong and he would prefer the Federal Reserve to keep interest rates low.
The dollar shed 1.75 percent against the yen this week, its fourth week lower in five, as a rise in tensions in Asia and Europe prompted buying of the safe-haven Japanese currency, it said.
North Korean ballistic missile launch fails
North Korea has failed to launch a missile on its east coast, South Korean and US military officials say, a day after Pyongyang warned the US amid rising tension in the region, said a report.
The US said a ballistic missile exploded within seconds of the launch. Hours earlier, North Korea paraded what appeared to be long-range ballistic missiles at a major military display, it said.
China says a war on Korean Peninsula will be devastating
China warned that a war on the Korean Peninsula would have devastating consequences as the US threatened military retaliation against North Korea if it proceeds with a nuclear test this weekend, said a Bloomberg report.
A spokesman for North Korea’s military warned Friday that “the Trump administration’s serious military hysteria has reached a dangerous phase which can no longer be overlooked.”
Petrol & Diesel prices up
The price of petrol was tonight hiked by Rs 1.39 per litre and diesel by Rs 1.04 a litre in sync with firming international rates. The actual increase in price will be more after taking into account local VAT. Petrol in Delhi currently costs Rs 66.29 a litre while a litre of diesel is priced at Rs 55.61.
Centre, states taxmen to decide services rate in GST this week
Tax officials of the central and state governments will this week hold their maiden meeting on devising a formula for tax rate to be levied on services under the Goods and Services Tax (GST) regime from July 1.
While the GST Council had previously decided on a four- tier rate structure of 5, 12, 18 and 28 percent, its fitment committee will hold its first meeting this week on slotting different services in one of the slabs, a senior official told PTI.
Reliance Power, DCB Bank, RIIL in focus
Shares of Reliance Power will be in focus after the company reported a 250 per cent rise in consolidated net profit at Rs 215.90 crore for the fourth quarter ended March 31, 2017, against Rs 61.55 crore in the corresponding quarter last year.
Reliance Infrastructure Ltd on Saturday reported a net profit of Rs40.94 crore for the quarter ended 31 March. The company had recorded a consolidated net loss of Rs327.41 crore during the January-March quarter in 2015-16.
DCB Bank Ltd reported 24 percent drop in net profit for the fourth quarter on higher provisioning and higher tax expense. The net profit for the quarter was Rs 52.86 crore as compared to Rs 69.53 crore a year ago.
Rupee rebounds 26 paise to 64.41/USD
The rupee staged a smart rebound on Thursday and closed 26 paise higher at 64.41 against the US dollar on account of fresh selling of the American currency by exporters. The rupee opened higher at 64.45 as against yesterday's closing level of 64.67 per dollar at the Interbank Foreign Exchange market.
Gold near 5-month high
Gold on Friday hovered near the 5-month high hit in the previous session and was set for its biggest weekly percentage rise since June as a weaker dollar and geopolitical worries over the Middle East and North Korea stoked safe-haven demand, said a report.
Spot gold was down 0.1 per cent at $1,286.25 per ounce by 0820 GMT in thin trade due to a public holiday in many countries. Bullion prices hit their highest since early November at $1,288.64 an ounce the session before, it said.
Sebi wants stricter monitoring of IPO proceeds
To check any misuse of funds raised through IPOs, regulator Sebi plans to make it mandatory for all companies to appoint a monitoring agency to keep a tab on the use of the capital raised through a share sale.

Suspecting misuse of funds raised through smaller share sales of up to Rs 500 crore, the regulator is now mulling making it mandatory for all the companies to get the use of their IPO proceeds monitored, irrespective of the offer size, sources said.
Posted on 8:21:00 AM | Categories:

Apr 12, 2017

What To Watch Out Today12 April 2017 For Possible Market Action

The Nifty is likely to start on a flat on Wednesday tracking muted handover from Wall Street. The index closed above its crucial resistance level of 9,200 and its 13-days exponential moving average placed at 9,175.
Here are top cues from domestic as well as international markets which could have a bearing on D-Street:
 
Wall Street ends slightly down 
US stocks ended down on Tuesday amid concern over geopolitical risks weighing on the sentiment of investors. Traders remain cautious ahead of corporate earnings reports as well.
Worries over rising tensions between the United States and Russia, Syria and North Korea drove investors into gold and other safe-haven assets and pushed up the CBOE Volatility index. VIX, above 15 for the first time since Election Day, said a report.
The Dow Jones Industrial Average ended down 6.72 points, or 0.03 percent, to 20,651.3, the S&P 500 lost 3.38 points, or 0.14 percent, to 2,353.78 and the Nasdaq Composite dropped 14.15 points, or 0.24 percent, to 5,866.77.
3-4 interest rate hikes by US 
San Francisco Federal Reserve Bank President John Williams said on Tuesday that the US central bank should raise interest rates three or four times this year, and begin to trim the Fed's multitrillion-dollar balance sheet in late 2017, said a report. The Fed raised rates last month for the second time in three months. Most Fed officials say they think three rate increases this year will likely be appropriate.
SGX Nifty 
The Nifty futures on the Singapore Stock Exchange were trading flat at 9,250 indicating a flat-to-positive opening for the domestic market.
Donald Trump raises geopolitical concerns 
North Korea is looking for trouble, US President Donald Trump said, asserting that America will solve the North Korean "problem" unilaterally even if China does not help.
"North Korea is looking for trouble. If China decides to help, that would be great. If not, we will solve the problem without them! USA," Trump tweeted, toughening his stance on North Korea. In another tweet, Trump also gave an insight into his talks with his Chinese counterpart Xi Jinping, whom he met last week at his Mar-a-Lago resort in Florida.
Reliance Jio announces new offer
Telecom stocks will be in focus after Reliance Jio announced its Dhan Dhana Dhan offer under which it will offer customers three months of unlimited data and free calls for a one-time recharge of Rs 309.
The details of the plan listed on Jio's website state that Jio Prime subscribers will get 84GB for 84 days on the first recharge of Rs 309, while those who recharge for Rs 509 will get 168 GB for 84 days.
Vedanta completes buyout of Cairn India: 
The merger of cash-rich oil producer Cairn India into its debt-ridden parent Vedanta Ltd is operational starting Tuesday.
"This merger consolidates Vedanta's position as one of the world's largest diversified natural resources companies, with world-class, low-cost assets in metals and mining and oil and gas," a statement by the two firms said.
After absorbing its cash-rich subsidiary, Vedanta will have a larger pro forma market cap of USD 15.6 billion and a higher free float of 49.9 percent.
India offers $10 billion investment to Bangladesh
India will invest up to $10 billion in Bangladeshi sectors including infrastructure and medicine and will provide $5 billion in loans, including $500 million in military assistance, Prime Minister Sheikh Hasina said on Tuesday.
Rupee closes marginally higher
The Indian rupee on Tuesday closed marginally higher against the US dollar, ahead of the key macroeconomic data. The rupee closed at 64.50, up 0.09 percent from its Monday?s close of 64.56. The rupee opened at 64.65 a dollar and touched a high and a low of 64.43 and 64.69, respectively.
Dollar near five-month low vs Yen
The dollar ends lower nearly touching a five-month low against the Japanese yen, as geopolitical risk and declining US Treasury yields pushed traders out of the greenback. The dollar index, which gauges the U.S. currency against a basket of six major peers, was off 0.3 percent on the day at 100.71.
Inflation, IIP Data eyed
The government will announce monthly inflation data based on consumer price index (CPI) for March 2017 on Wednesday. The all-India general CPI inflation increased to 3.65 percent in February 2017, compared with 3.17 per cent in January 2017.
Besides inflation, the government would also release index of industrial production (IIP) data for February 2017, which will be released after market hours on Wednesday.
India's industrial production improved 2.7 percent in January 2017 over January 2016, snapping 0.1 percent decline recorded in December 2016.
Nifty forms Bullish Engulfing pattern 
Bulls managed to push the index beyond its crucial resistance level of 9,200. It also formed a two-candlestick pattern, popularly known as a bullish engulfing pattern on the daily charts.
The Nifty appears to have once again taken support on its 13 Day Exponential Moving Average before strongly bouncing back to register Bullish Engulfing formation on the charts. Sustaining above the said average one can expect Nifty to retest its previous peak of 9,274 levels, said experts.
Crude oil prices rise
Crude oil prices turned positive amid reports that Saudi Arabia wants to continue output cuts for an additional six months. Oil futures have been trading in a range, supported by production cuts from the Organization of Petroleum Exporting Countries cartel.

Brent crude, the international benchmark for oil, settled up 25 cents at $56.23 a barrel on Tuesday, its highest since March 7. Brent has risen in each of the previous seven sessions.
Posted on 8:02:00 AM | Categories: