Wednesday, 16 September 2009

Karnataka Bank (Rs 135.2): Buy

We recommend a buy in Karnataka Bank from a short-term horizon. It is evident from the charts that the stock, after encountering key resistance at Rs 155 in late May, began to decline. It was on a medium-term downtrend until it found support at around Rs 124 in late August. Subsequently, the stock commenced trending up, resuming its intermediate-term uptrend that started from the March low of Rs 55. The stock surpassed its 21-day moving average recently and it breached its 50-day moving average on September 15. Moreover, we notice that there is an increase in volumes over the past three trading sessions. The daily relative strength index (RSI) has entered the bullish zone and the weekly RSI is on the verge of entering this zone. Our short-term outlook for the stock is bullish. We expect it to rally further until it knocks our price target of Rs 149 in the approaching sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 128.

Source: thehindubusinessline

Buy Canara Bank, says Sudarshan Sukhani

One should buy Canara Bank, says Technical Analyst, Sudarshan Sukhani.

Sukhani told CNBC-TV18, "Canara Bank has been a good performer but it has not gone to the excesses – I will not call them excesses, it has not run up as much as Bank of India or Bank of Baroda, which means there is a lot of potential in Canara Bank to do what the other banks are in the process of doing.”

He further added, “Canara Bank is a stock that has seen back-to-back gains. Normally I would have said buy on dips but banks are not buy-on-dips candidates. This rally can continue not only today but for the next few days. So you should go ahead, buy Canara Bank, keep a stoploss if you are a day trader, you have a target. If you are a positional trader, you can just hang on to Canara Bank and wait patiently for the next few days.”

Source: Moneycontrol

Buy Television Eighteen: Sudarshan Sukhani

Sukhani told CNBC-TV18, "I like TV18 and that is a surprise because I have been very bearish on that stock for many months and the stock prices have more or less justified my skepticism. TV18 after a very sharp correction - first a sharp rally and then a sharp correction – is in a trading range. Yesterday it picked up a little but that is what we need to know that maybe it is coming out of the trading range. So, it is a low price stock in a sense it has corrected a lot. So, there is a lot of potential on the upside. I am not talking about fundamentals but technically there is a buying opportunity here and once these themes get captured by the market, the rallies could be much higher. For a day trader, you have targets; for a positional trader, it could be very interesting.”

Source: Moneycontrol

Pipavav IPO fully subscribed: Should you invest?

Pipavav Shipyard has opened its initial public offering (IPO) of 85,450,225 equity shares of Rs 10 each for subscription today. It has been subscribed 1.42 so far and has received bids for 9.9 crore shares as against the issue size, as per the data available on the NSE website..

It will raise nearly Rs 513 crore at higher end of the price band Rs 55-60 per equity share. The issue will close for subscription on September 18, 2009.

Moneycontrol conducted a poll whether to subscribe the issue or not. All experts recommended avoiding the issue while SP Tulsian and Avinash Gorakshakar recommended subscribing the issue.

Source: Moneycontrol

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.