iCharts Discussions

[jdpt]

YES BANK

[jdpt]

Tech Mahindra

[rajmohanmbamhr]

[rajmohanmbamhr]

Thanks jdpt

[rajmohanmbamhr]

Axis on Linear Scale

[rajmohanmbamhr]

BPCL Weekly

[rajmohanmbamhr]

[rajmohanmbamhr]

DIVIS LAB Buy Only if Weekly high crossed

[rajmohanmbamhr]

Be in short as long as its trades below 240

[rajmohanmbamhr]

Kotak mah Bank 10 year Chart

[rajmohanmbamhr]

Power Off as long as its trades below 82 RPOWER

[rajmohanmbamhr]

Banking Sector Long Term:

Now most of the PSU Banks are trading at-least 50% lower than their peak.
so its value buying these stocks now. My personal opinion is Big NO.

The 2 Major reasons for the NO.

1. NPA Bubble
2. New banking licence

Come to NPA. The banks are actually hiding their NPA's by collecting a small portion of the debt due and making that entire loan to be out of NPA. But for how-long they can do like this. The more the time they hide their NPA's the more the bubble will become larger. Then if all banks go to government for rescue already high deficit government cant do any-thigh. The burst of this NPA bubble is not going to happen very soon. The time period will take to burst of the bubble is entirely depends upon the growth of the economy. If its slowdown further soon it will happen(here soon means within 2 -3 years).

The new banking licence will create another trouble to these PSU banks.
RBI is going to give licence to big corporates. So the sharing of the business as well as profit. So the high quality credit sharing will leads to further big dip in profits in short and long term.

The NPA , New banking licence , Inefficient higher management and low quality customer relationship leads to long term negative growth to this PSU banks.

And what about the price. My opinion is we can get these stocks at-least 50% lower than CMP.

And the private sector banks will obviously outperform the Public Sector
banks in Long term. so if want to invest for long term invest in Private Sector bank and don't touch the Public Sector banks .

Thanks

Rajmohan

[rajmohanmbamhr]

Crude Oil

[rajmohanmbamhr]

SILVER Be in Long as long as its trades above 40000 and viceversa.

[buddhas]

please share your view on USD:INR currency too