In present time, it is true that Equity Markets are going through from a great Volatility. But for many traders and Investors who have even lost more than 30-40 wealth in last few weeks or months, only this market is still the place to earn far better returns than any other Investment options. For taking risk, market may sometimes reward you or sometimes may also punish you by eroding your portfolio or Holding value. However, there is no best alternative of Share Market. That’s why, there are so many traders/investors who almost loosed 80-90 percent of their total value but are still active in markets.
In last few weeks, we had seen some stocks which helped in to broke the overall market sentiment. But among this, few stocks may also have a great opportunity for investors and traders.
DEWAN HOUSING FINANCE
Dewan Housing Finance or DHFL is a NBFC company having a good market share and Trustable name in market. In my preview post what can happen next in DHFL share, I had wrote about what could be the next moves in DHFL shares. But now when some fresh developments has taken place in last few days, it is possible to see the reflection of this Developments in shares of DHFL soon.
Firstly, an investor or you can say Fund has now started showing some interest in to Buy shares of DHFL at current levels. In last four days, BNP Paribas Arbitrage Fund has bought almost 1 crore shares of DHFL at an average price of around Rs 300. One more investor has bought shares of DHFL in last few days. MRIDUL SINGHANIA has bought almost 16 lakh shares of DHFL at the same price of Rs 300. You can also check this data at NSE Bulk Deal Data.
Secondly, It doesn’t looks like that Crack in shares of DHFL was with the intention of just a gameplay. Because it has really affected the whole NBFCs shares after 21st September. For investors, it could mean that DHFL is a good opportunity at current levels.
It is true that even after previous Friday crack of 60 percent, stock has continued to slide towards lower levels. But now, in the long-term technical charts, DHFL share has came to its next strong base. Range of 210-250, may be proved as a strong support range for stock. And because stock has also seen a continues slide of more than Rs 130 from Levels of Rs 400, it is possible now to see some bounceback in stock. Currently, stock is trading around Rs 275. Therefore, at current levels, I think DHFL can be used for buying with a short target of Rs 320-340 achievable in this month.
In lower side, probably, stock should take a support from the suggested strong base. But from what point it would take the support is little difficult to say. It could either take the support from 250 or from the lower end point 210 also.
So, overall, it could be a good trade for October. But if you are going to use stoploss, then, I think it is best to place it around Rs 245-248. Because, if stock breaches this level, then it is possible to see some Rs 30-40 more fall in stock.
Next Idea for October is again a oversold stock i.e Yesbank. From all the fundamental aspects, Yesbank is a good stock. And when it is available at around Rs 180 from highs of Rs 400, what other thing could be the best! All the 50 percent fall in Yesbank shares has just triggered by its MD Rana Kapoor leaving the post due to RBI directions. It is true that Rana Kapoor had lead the Yes bank in one of the best ways. But in this competitive market, it may possible to get failure in finding 100 percent same personallity. But it is not possible to find the best alternative of the preferred choice!
Through Twitter, Rana Kapoor has also tried to convince the Shareholders and Investors of Yesbank that the Future of Bank is still positive by saying that ‘Diamonds are Forever’. He further tweeted more tweets to regain the interest of investors in a best possible way. Although, it was to happen because MD Rana Kapoor had no other options for increasing the confident of investors on Yes bank.
Although, I think YesBank is not like one of them who will not be able to recover again. The only matter is who will be the next leadership of YesBank. Maybe, the next leader would not be as same as Rana Kapoor was. Also, it may possible to see some significant changes in Asset quality of company in next few quarters after new CEO. But despite of dicounting such things, Range of Rs 250-300 looks a better suitable levels where stock should trade.
On Tecnical charts, level of Rs 220 was a strong base for stock where Yesbank also tried to get support. But it succeeded in it only for few days. Currently, stock is trading around Rs 183. See the Red circle on picture above to see that support.
Overall, I think YesBank shares may show some comeback soon after recent massive fall. On higher side, level of Rs 220 will now act as a resistance level for the stock. Yes bank share will now become positive on weekly technical charts only by crossing this resistance. But on lower side, it is also possible to see levels of around 160-150, if overall market faces further pressure in coming days. Therefore, with assuming a pure 10 percent risk, one can try this share for a target of Rs 220 achievable in this October Month.
Overall both the stocks that have mentioned above are currently suffering from a oversold situations. Therefore, it is possible to see some volatility in coming days in these shares. But with a better Stoploss and Exit targets, such shares can be used for immediate returns. If you are an trader or short term investor, then just try not to get involved very much with such stocks until they turn positive on technical charts. Use you fixed targets to take complete exits.
For long-term investors, the strategy could be very different because of the longer view and holding capacity.
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