This is a pure call backed by the banking theme.
> The stock has taken support at 25 levels and after consolidating for 1 and 3 months it is ready to give breakout with huge , accumulation in the stock can be seen since December 2020.
> The has also crossed 100 and 200 DMAs very recently, strong upmove is around the corner.
> A lot of movement can be seen in almost all PSU banks.
> NIFTY PSU Bank index chart is in massive UPTREND. When entire sector is performing individual stocks are most likely to run along.
> I have selected PNB and BOB because of it's wonderful chart pattern.
> One more very important thing is that government is about to setup a BAD BANK. Which will help all PSU banks tremendously clean their , consequently valuations of these PSU banks will automatically improve.
What is BAD BANK?
A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. The entity holding significant nonperforming assets will sell these holdings to the bad bank at market price. By transferring such assets to the bad bank, the original institution may clear its balance sheet—although it will still be forced to take write-downs. This will help all PSU banks to get rid of their NPAs.
FRESH BUY - AT CMP 41
OLD BUY - HOLD
TARGET 1 - 100 (+150% aprx)
TARGET 2 - 135 (+225% aprx)
Risk Management Tip: Never invest more than 5% of your capital in any single stock.