A short term view :
The stock is showing a turnaround in the higher timeframe setup. The reason is obviously the merger as the major momentum came after the budget.
For now the flag pattern is emerging and a breakout in the upper direction can give a good push and good returns.
A long term view :
No doubt Allahabad bank has the largest number of fixed assets compared to other banks in the country but the NPA's too, rising on average of 5% p.a. for the last 3 years.
Forget the the bank acquired, Indian Bank NPA's rose at 17% average for the same period.
NPA's (Gross) do not affect the stock prices as much as they are tend to be commercialized in the journals. Although, the relationship is significant but not very strong.
The story is a bit different with Net NPA or Provision.
With that said, the bank still shows signs of a high curvature from the last trajectory.
The stock is showing a turnaround in the higher timeframe setup. The reason is obviously the merger as the major momentum came after the budget.
For now the flag pattern is emerging and a breakout in the upper direction can give a good push and good returns.
A long term view :
No doubt Allahabad bank has the largest number of fixed assets compared to other banks in the country but the NPA's too, rising on average of 5% p.a. for the last 3 years.
Forget the the bank acquired, Indian Bank NPA's rose at 17% average for the same period.
NPA's (Gross) do not affect the stock prices as much as they are tend to be commercialized in the journals. Although, the relationship is significant but not very strong.
The story is a bit different with Net NPA or Provision.
With that said, the bank still shows signs of a high curvature from the last trajectory.
