raj_rishav

Bandhan Bank - RBI Effect Bet

Long
NSE:BANDHANBNK   BANDHAN BANK LTD
RBI's loan restructuring for MSME may have a positive effect on Bandhan Bank's price. ( Or opposite Jumla! but I won't take short trades tomorrow).

Positional Ideas:

Buy above 308.8 for 313, 315.5, 320, 330 with SL at 303 (I would take these only - explained above)
Sell below 295 with for 285 with 5 point trailing SL

Quote-
Typically a loan restructuring allows a borrower some flexibility in terms of extension of the period of loan EMI , interest payment so as to help the borrower buy more time to pay off his loan to the lender. Loan restructuring helps the lender to save on higher provisioning as otherwise, banks have to make higher provisions on default or a non-performing asset ( NPA ) which impacts their profitability.

From the NBFC space, Shriram City union finance has high exposure to SME /MSME book at 57%, MAS Financial has 65% exposure to SME /MSME book, Bajaj Finance 13%, Magma Fincorp 11.5%. Banks that have high exposure to SME /MSME/Micro book are Bandhan Bank 68%, SBI at 14%, Axis bank 11%, Indusind bank 33%, Au small finance bank 16%.

xxx

Additionally, the large volume without substantial price movement indicate two things:

1. BTST trade - so in case of gap-up opening, ill wait for price to stabilise & Will wait for confirmation before taking long positions.
2. Late Buying Interest - Favour Long Positions more. So ill be extra careful when taking short positions.



Disclaimer:
Being an Engineer + MBA Finance, I bet on my Strong Fundamentals & analytical skills! But I am new to technical analysis & trading (3 months now). Every weekend,I study some new trading concepts and publish analysis & take trades on them. There are NOT trading advice!

The intention is to gather feedback on them, so please drop in a comment if you find areas of improvement.
& If the idea makes sense to you - please do Like to give me confidence to take trades on them.
Trade active: Buy triggered at 304 following 5 min ORB - Risky entry lets see.
Comment: TSL - 305
Comment: Holding positions
Trade closed: stop reached: TSL hit

Comments

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