Fwd: Market view & Stock Pick
Prabhakar A.K
Nifty (6176) Nifty has closed positive +3% for the week after 3weeks of correction and now a move above 6235 would push rally beyond 6304-6311 (Gap-down levels made on 5th November) is very crucial for 6357 & 6571 are our target by end December. Nifty Weekly support 6050 & Resistance 6311, if 6265-6311 above is not crossed then selling pressure on cards. Today Nifty has to hold 6159 and cross 6201 to target 6235 & 6265 on higher side, while if Nifty fails to cross 6195 and goes below 6159 then selling pressure till 6128 & 6095 on cards.
Parliament session starts 5th December and Exit poll results also will be known on 5th December which can decide the trend of market. Rajasthan polls: Record 74.83 per cent turnout, if Market takes high turnout as positive or wave towards one party then pre-election rally can be on cards for which 6265-6311 should be crossed by 5th December 2013.
Must Read:
UCO BANK-The Turnaround Story http://www.ucobank.com/investors/pdf/InvMeet-PPT2-22-nov-13.pdf
RELIANCECAPITAL-IDFC-BAJAJFINANCE-L&TFINACE-LICHOUSING are few companies which have applied for banking. History suggests that stocks which get banking give 4-5time return in 4-5years AXISBANK-KOTAKBANK-INDUSINDBANK-YESBANK are notable names.
Chart of the day--- RELIANCE CAPITAL Market Cap-9261crs Book-467 NIM-5.3%
RCAP Rs.376 has closed high of 10month on monthly closing basis and if Rs.386 is crossed then stock could head towards Rs.508 3-5months from break-out. Stock has corrected from high of Rs.2924 made in January 2008 to low of Rs.226. Stock in next 34-36months can see huge potential and has a chance to give 2-3times return. Stock has made GOLDEN CROSS with 50DMA Rs.353 crossing 200DMA Rs.350 3days back.
http://www.reliancecapital.co.in/pdf/RCL_Q2FY14_Results_presentation-Investors.pdf
Reliance Mutual Fund – Top two fund, Average Assets under Management (AAUM) of Rs. 93,249 crore (US$ 14.9 billion) for the quarter ended September 30, 2013.
Reliance Life Insurance- Reliance Commercial Finance- Reliance Securities- Reliance General Insurance
RCAP Broking & Distribution business in last 2quaters has been a drag, due to fall in commodity business and weak market sentiment, while very segment is showing improvement.
Company has good market share in all 5 verticals and Insurance pending bill or banking if approved can rerate this company, even otherwise each business is seeing good revival and once the economy and sentiment improves stock can quote @ 2times book.
A.K.Prabhakar