I had warned readers of a crash in my last post a month back, Nifty was at 8700 at that point of time.
Markets have refused to go down, Not just Indian even Global Markets have withstood every threat.
Be it: Brexit, FED, More looming EU exits, Lack of earnings growth, Expensive Valuations or even Donald Trump.
While writing the last time a month back, I was very clear that a Crash is coming up. As I write now I am very unclear about what is going to happen up next.
Anyway, That said we don't really have to predict the indices to make some money.
If we see the stock specific movement in last few days we can clearly gauge something.
Unitech was up 20% Yesterday. GMR INFRA is buzzing today.
Banking stocks have rallied a lot. What that means is regardless of fundamentals the Market is going GaGa behind beaten down stocks maybe because there is not much value left for value picks at present in the market.
In the banking sector, I was keen to buy J&K Bank yesterday but today it opened up 15%. So we have to mix a bit of charts here right now to pick a beaten down stock.
At current market price of around Rs 28, I think INDIAN OVERSEAS BANK is one such banking stock which can give a quick buck.
By quick buck I mean super-fast rally of more than 20-30% in the next 1-2 months however it can happen in next few days itself.
Below is a weekly chart of IOB showing how it can breakout above 30-33 with either price action or time delay.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that i might have Indian Overseas Bank in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.