Momentum in few sectors

Federal Bank


Federal Bank is a major private sector commercial bank headquartered at Aluva, Kochi, Kerala. Products and services offered by bank includes trade finance, specialized corporate finance products, structured finance, foreign exchange, syndication services and electronic banking requirements. Bank has a good presence in Kerela and other near states.

At the last of April 2017, company posts a great profit for quarter Jan-March. Company said that they are expecting decrease in their NPAs and higher growth in upcoming quarters. This statement by management gave a boost to stock to cross levels of Rs.110. The gain that we are seeing in stock is also driven by the government’s future plan of reducing Banks NPAs. Many banking stocks who are under pressure because of NPAs gets a sharp rose in their prices after this news. Valuation-wise, banking stocks are not much expensive at present market. But from risk point of view, go with those banking stocks having less risk. From potential and less risk view, one can buy syndicate bank for long-term. Andhra bank can also be used for any long-term investment in Banking sector. But for short-term, one can buy IDBI bank for target of Rs.94-98. Another options for short-term includes Vijaya bank with target of Rs.102 and Union bank with target of Rs.208.

Real Estate Sector

Real estate sector has also gave great returns in the April and technically, this momentum seems to be continue for few more weeks. Fundamentally, real estate is at lower valuations but it has some risks. This sector needs some long-time for giving more good returns. Anyone who had made position in Indiabulls real should book their profit around Rs.175. While, HDIL can be bought with medium-term view for target of Rs.132. However, with higher chance of earning great profit, one can also bet on unitech. In this rally of real estate sector, unitech has not participated little much. So, one can buy it with short-term target of Rs.7.20.

Aviation sector

March onwards, aviation sector especially spicejet has seen a great rose in their market value. The amazing part is that spicejet has now gave almost 1000 percent returns in just 3 years. But as of now, spicejet is getting more and more expensive with its every single move. If the Jet airways would also around Rs.720, then we could assume that aviation sector is gathering equal interest of the investors. But most of that interest is going in spicejet. Thus, i would advice to avoid any long-term investment in spicejet as per current condition of company and sector. However, one can definitely go with Jet airways for long-term. Jet airways has a good potential for future and its stock is available at low rate in comparision of both IndiGo and SpiceJet.

Auto Sector

Maruti Suzuki has also gave wonderful returns to its investors in Market rally. Around levels of Rs.4000, stock was really looking a good candidate to buy for long-term. At that time, the company really had a great potential which was not reflected in the stock for long time. Now, company has achieved 2 lakh market capital which really values a lot. But now, stock is not looking good for a long-term investment anymore and i would advice to book profit from it. However, one can go with M&M which looks very attractive as per current company’s earnings and future. For long-term, one can expect a target of Rs.1650 from it. Hero motocorp can also be bought with long-term target of Rs.3940.

In above paragraphs, i have discussed only few stocks of particular sectors. If you have any question related to this content or any query on related stocks, you can ask your question through using comment box.

Have any question related to this post? Feel free to ask through comment box given below.


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2 thoughts on “Momentum in few sectors

  • May 16, 2017 at 8:34 am
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    I want to know about NBFC sector ? I am holding Stain credit care and Arman finance. What is the fate of these sectors and stoclks?

    Reply
    • May 17, 2017 at 1:49 pm
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      I think NBFC sector has a great future and one can invest in it with long-term view of around 2 years. I would advice to buy muthoot finance for long-term. Somewhere, i also think that there could be a great chance of earning money from reliance capital with target of Rs.740 as per strong Q4.
      Arman finance is a small finance company and i think if you want to hold it for long-term, you can try to hold. But I would advice to not invest all of your money for NBFC sector in Arman finance. Either, you should invest your money in 2-4 stocks of NBFC sector for earning great returns. Thus, if you have only bought stain creditcare and Arman finance, you should buy 2 more stocks from NBFC sector and invest your money equally in them.

      Reply

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