morning thoughts...
The markets remained volatile throughout the day but saw good individual stock movements.
Technically the markets are ought to be in range with consolidation mode in the coming session.
Coming to the banking industry given the kind of capital and asset quality stress that PSU banks are in, any kind of reprieve can bring them some breathing space. Now, priority sector lending is one area where PSU banks clearly out do their private sector peers given their reach. And it seems the government has a novel plan to help them cash in on this edge. Now, as we know, under carbon credit trading norms, companies who pollute more can buy the points from those whose emissions are less. It provides incentive to less polluting units and also helps in keeping the overall emissions under control. So the government has proposed changes to the priority sector guidelines that will be aligned to the carbon credit norms. Typically, banks are required to lend 40% of their advances to priority sectors, which includes agriculture, education and housing. But most private sector and foreign banks do not fulfill this limit given their limited reach. Many do buy securitized assets to comply with the norms. But under the new guidelines, the PSU banks could actually sell their priority sector credit to other financial entities who wish to buy them in order to comply with the norms. Not only will this incentivize the PSU entities to lend more to priority sector but also help them cash in on it. Seems like a win-win for the entire sector!
On the downside 8600 remains as crucial supports for the markets whereas good resistance will be witnessed around 8750 levels.
Coming to the commodity markets bullions and base metals are looking positive while energy is a sell on rise.
Yesterday's calls sent
Double bumper Zee 360 ca - buy at cmp 5.90 sl 4.25 targets 12 - went 13.90
Nifty - buy at cmp 8697 sl 8670 targets 8765 - went 8775
Bank nifty - buy at cmp 19050 sl 19000 targets 19300 - went 19347
Yes bank - buy at cmp 832 sl 828 targets 845 - went 857
Idfc - sell at cmp 169 sl 170 targets 166 - hit sl
Indus ind bank - buy at cmp 902 sl 895 targets 918 - went 920
Jackpot Aegis logistics - buy at cmp 565 sl 550 targets 620 - went 648
Double bumper Tech mahindra 2800 pa - buy at cmp 21 sl 15 targets 45 - went 57
Bharti airtel - buy at cmp 388 sl 386 targets 400 - hit sl
The markets remained volatile throughout the day but saw good individual stock movements.
Technically the markets are ought to be in range with consolidation mode in the coming session.
Coming to the banking industry given the kind of capital and asset quality stress that PSU banks are in, any kind of reprieve can bring them some breathing space. Now, priority sector lending is one area where PSU banks clearly out do their private sector peers given their reach. And it seems the government has a novel plan to help them cash in on this edge. Now, as we know, under carbon credit trading norms, companies who pollute more can buy the points from those whose emissions are less. It provides incentive to less polluting units and also helps in keeping the overall emissions under control. So the government has proposed changes to the priority sector guidelines that will be aligned to the carbon credit norms. Typically, banks are required to lend 40% of their advances to priority sectors, which includes agriculture, education and housing. But most private sector and foreign banks do not fulfill this limit given their limited reach. Many do buy securitized assets to comply with the norms. But under the new guidelines, the PSU banks could actually sell their priority sector credit to other financial entities who wish to buy them in order to comply with the norms. Not only will this incentivize the PSU entities to lend more to priority sector but also help them cash in on it. Seems like a win-win for the entire sector!
On the downside 8600 remains as crucial supports for the markets whereas good resistance will be witnessed around 8750 levels.
Coming to the commodity markets bullions and base metals are looking positive while energy is a sell on rise.
Yesterday's calls sent
Double bumper Zee 360 ca - buy at cmp 5.90 sl 4.25 targets 12 - went 13.90
Nifty - buy at cmp 8697 sl 8670 targets 8765 - went 8775
Bank nifty - buy at cmp 19050 sl 19000 targets 19300 - went 19347
Yes bank - buy at cmp 832 sl 828 targets 845 - went 857
Idfc - sell at cmp 169 sl 170 targets 166 - hit sl
Indus ind bank - buy at cmp 902 sl 895 targets 918 - went 920
Jackpot Aegis logistics - buy at cmp 565 sl 550 targets 620 - went 648
Double bumper Tech mahindra 2800 pa - buy at cmp 21 sl 15 targets 45 - went 57
Bharti airtel - buy at cmp 388 sl 386 targets 400 - hit sl
