JK Bank looks like its in a daily consolidation and once its done and breaks out, its highly likely to retest the previous highs which translates to a very good risk/ reward profile. The potential profit could be close to 300% and thats why I am closely watching this. An ideal investment opportunity. DO NOT buy at the current levels coz the way I look at it, the consolidation is not done yet and there is one possible down move pending.
Fundamentally its on the verge of Merger/ Takeover process , its EBITA Credit rating is still low , price may have indicated its moving up but seems it might end up in merger
Regards
Divergensity
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@I-Fund-Trader, Thank you for the insight. So how would one interpret the merger? Is it going to be positive for it or will it be an adverse outcome?
I-Fund-Trader
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@Shredskin, The Outcome can not be interpreted as the RBI which is Governing body and authority to decide with which Bank this will be merged , like how they did with Canara bank merger , i can only say the price movement will inform all this factor but for sure the correction during the merger is high likely
Thanks
Divergensity
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@I-Fund-Trader, Thank you for the reply. Guess we wait and watch then. :)
Regards