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Monday, March 28, 2011

The Banking Licence Saga in India

We have been hearing a lot of stories on how new banking licences are to be granted after almost a decade,to roil things up the RBI,SBI,Finance ministry have been playing footsie on the issue.

Amoungst investors the names IFCI,Religare,indiabulls,Reliance Capital have been bandied about with gay abandon.Its pertinent to look at MM Finance from a purely short term speculative interest.At Rs 820-30 can buy it on "swing"delivery with a stop loss below 800 and an upside of 5% from current levels.

I had earlier reccomended LIC Housing,IFCI and all the recent activity makes me believe that the investor would be smart to hold onto these stocks if bought at the lower levels irrespective of which way the markets flow.

A broad band of 5500-5760 for the nifty is the consensus with the analysts I have spoken with.