Wednesday, February 25, 2009

INDIAN MARKETS Feb 2009 : PUBLIC BANKING SECTOR - BUYING OPPORTUNITIES

With the banking sector under pressure, let us now analyse some of the important public sector banks for tremendous buying opportunities they are going to present to us in near future. Our focus will be to assess the buying price of these banks for short and long term investments. We shall formulate buying strategies for some mouth watering opportunities expected to be thrown at us by Public Sector Banks in days to come.

State Bank of India (SBIN)
SBIN has no buying opportunity before 920. Short term investors can enter at around 920 for a gain of Rs 80/90. Long term investors can invest 25% at this level. If SBIN breaches 920, one can safely look for a buy at 730. At 730 short term investors can look to pocket a profit of
Rs 280. Long term investors can pump in another 50% money at 730 level.

PNB
Short term investors can look to enter PNB at 338 but should quickly book profit of Rs 35. Long term investors can put 25% of their investment at level of 338. If PNB breaches 338 then buy it not before 300. Short term investors can then get Rs 100 as profit from level of 300. Long term investors should put in another 50% of their money at this level.

Bank of Baroda
Buy Bank of Baroda not before 198. It may touch 190 in intra-day move. Short term investors can look for a bounce of 25/30 points from level of 198. Long term investors should just put in 25% of their money at 198. They should plan to put 50% more money at level of 140/150. At 150 short term investors can hope to reap Rs 100 as profit.

Syndicate Bank
Buy Syndicate bank only at 47. At the present level it is an absolute NO even for short term gains. At 47 one has to book quick profits. It can be considered for actual buying only at around 30.

IDBI
IDBI can be considered for buying only at 40 and may even drift down to 30. So 50% money should be used for buying at level of 40 and rest 50% should be used for buying at the level of 30. At present level it is too weak to look for any buying opportunity.