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BANKNIFTY trade setupThe banknifty index is stuck in a range from 44150 to 43500 levels , any breakout or breakdown of these levels can give a directional move in the index , on the downside expect banknifty to touch 42800 levels if the range is broken downside ,higher probability trade will be on the upside if all time highs of index ie 44150 levels gets broken , one can enter on retest for targets of 44500 and 45k in short term , personally will try to avoid shorting this bull index
NSE:BANKNIFTYLong
by sniper1290
AU BANK, Buy Strategy!AU BANK has been consolidating and trading in a range since about 2 years now. When will it break out? I don't know, and if anyone says they do, they are gambling. But what I can say is that if price breaks out of the range with good volumes, there is a good chance that we will see the price trending upwards for some time, which would be a very good opportunity to make some healthy profits. Keeping that in mind - Buy above the white channel, if stock breaks out with healthy volumes. Stoploss below just below the white channel. A target of 940 is certainly achievable, maybe even more considering how long it has been consolidating on the weekly chart. That said I would still advise the age old practice of having a trailing stop loss in the form of a moving average or ATR, whichever floats your boat.
NSE:AUBANKLong
by Amit_Thakkar_
IndusInd Bank Net Profits Zoom 50% Price Action also showing (+)IndusInd bank trading in a bullish channel and now it is trading in mid range of that channel. Price also taken support at EMA 200 D is line. MACD and RSi also giving bullish crossover. So technically this is looking awesome on chart. Now talk about fundamentally, so here today was the result day and result is also attractive and the board of the bank also recommended a payment of dividend at the rate of 14 Per share subject to approval of the shareholders at the ensuring Annual General Meeting. So if anyone wants to go long in it, can go with given level on chart. Please follow strict stop loss. For option lover:- Sale IndusInd 1100 pe at 31 keep stop loss 62 & hedge with Buy IndusInd 1000 pe at 6.9 For naked option buying:- Buy IndusInd 1080 Ce at 53.8 keep stop loss at 13 Target 77/89/101 Please follow a strict stop loss If anyone likes my work please support me by like, follow and comment your thought on this trading idea. thankyou:))
NSE:INDUSINDBKLong
by TraderRahulPal
IDFCFIRST BANK short Term SetUp .1. IDFCFIRST BANK forming Falling Channel which is going to Breakout Sooner Or Later . 2. Can Possibly Test Fib 0.382 Level Before Breaking Out . So First Buying Zone Will be Fib 0.382 Level (details given in chart). 3. Fib 0.50 Level is coinciding with Important Support Level Of 46.50 ( which will be our second buying zone ) . if you get chance Buy here . 4. Place Sell order After buying @ 60 and Enjoy the Profit. 5. Mandatorily Use Trailing Stoploss to secure your Profits. Signal Duration - 10 days to 45 days NSE:IDFCFIRSTB Disclaimer :- Please DYOR before Investing.
NSE:IDFCFIRSTBLong
by Disruptive_Me
Going Short on Banking Stocks? Elliotical Approach to BankNifty.Hello Traders! 1. We see a completed 3rd wave of impulse that started after Lockdown - March 2020. 2. We see a clear zigzag correction for Wave a, marked with red ABC. 3. We see a 3-wave Wave b . The count of wave C of this wave is being shared here for clarity. 4.The most expected target for BankNifty should be around 30500 . This is because we see the possibility of an expanded flat (3-3-5). There is also an important guideline of Elliot wave theory that Wave 4 of a cycle falls very close to the Wave 4 of Wave 3 of the same cycle . A figure is attached for more clarification. 5. The final 5th Wave of the impulse is expected once the C wave of this 4th wave is complete as shown on the chart. Do use proper risk management. Happy Trading! Profits, Market's Mechanic.
NSE:BANKNIFTYShort
by UnknownUnicorn27677748
1
What are ratios to analyse any banking stocksHAPPY REPUBLIC DAY 🇮🇳 Today we will study ratios for analysing any banking/ non- banking stock. Key Ratios are - 1. Net Interest Margin (NIM) 2. Provision Non Performing Assets (PNPA) 3. Loan to Assets Ratio 4. Return on Assets Ratio (ROA) 5. Capital Adequacy Ratio 6. Gross NPA 7. Net NPA 8. CASA Ratio 9. Cost to Income ratio --------------------------------------------------------------------- 1. Net Interest Margin (NIM) 1. Net Interest Margin = ( Investment Income – Interest Expenses ) / Average Earning Assets. 2. Positive Net Interest Margin shows that bank is earning more money in the form of interest than its cost of funding investments. 3. There are several factors that affect bank NIM. One of the most significant is interest rates. When interest rates are high, banks are able to earn more from loans and investments, which increases their NIM. When interest rates low, banks earning will loans and investments decrease, which lead lower NIM. 4. In summary, Net Interest Margin is important measure of bank's profitability and its ability to generate income from its existing assets. NIM is affected by interest rates and competition. Banks with a high NIM are generally considered strong financial position and better to grow and invest in new opportunities. Let's look at example Bank in India has total assets of ₹1,00,000 crore consist of loans and investments. The bank has total deposits of ₹80,000 crore and it pays interest rate of 4% on savings accounts and 6% on Fix Deposit The bank total interest income for the period is ₹2,400 crore which is earned by loans and investments. The bank total interest expense for period is ₹1,600 crore, which is paid to depositors. To check the NIM we take the bank net interest income (NII) of ₹800 crore (₹2,400 crore in interest income - ₹1,600 crore interest expense) and divide by the bank average earning assets of ₹90,000 crore (average of total assets and total deposits). NIM = NII / Average Earning Assets NIM = ₹800 crore / ₹90,000 crore NIM = 0.89% Bank NIM is 0.89% every ₹100 of assets the bank is earning ₹0.89 of net interest income. This NIM is a measure of the bank efficiency in generating income from assets and can be used to compare it with other banks and over time. NIM in India will be lower than developed countries due to lower lending rates and high competition among bank. -=-=-=-= 2. Provision Non Performing Assets (PNPA) 1. An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. 2. Provision for Non Performing Assets (NPA). The amount keep aside by bank, to cover it's potential losses from loans and other credit related assets that have been non performing.These provisions are made when a bank expects that some of its borrowers will default on their loans, and the bank needs to set aside funds to cover the potential loss. 3. In summary, Provision for Non Performing Assets (NPA) Banks are required to make provisions for NPA on a regular basis, quarterly basis, amount of provisions is disclosed in the financial statements. Provision for NPA is an important measure of a bank's financial health, Help bank to absorb the impact of loan defaults and manage credit risk. Provisions for NPA is closely watched by investors, analysts, and regulators, it helps them to assess the bank's credit risk. Let's look at example Bank total loans of ₹50,000 crore. ₹2,000 crore classified Non performing Assets (NPA) borrowers defaulted their payments more than 90 days. Bank required to set aside certain percentage of the NPA loans as PNPA as per the Reserve Bank of India's guidelines. The current PNPA provisioning ratio is 15%. To get PNPA we multiply the NPA loans of ₹2,000 crore with the PNPA provisioning ratio of 15%. PNPA = NPA loans x PNPA provisioning ratio PNPA = INR 2,000 crore x 15% PNPA = INR 300 crore -=-=-=-= 3. Loan to Assets Ratio 1. Loan to Assets ratio can help investors obtain complete analysis of bank's operations. Banks that have relatively higher Loan to Assets ratio banks with lower levels of Loan to Assets ratios derive a relatively larger portion of their total incomes from more diversified, noninterest earning sources, such as asset management or trading. Banks with lower Loan to Assets ratios may fare better when interest rates are low or credit is tight. 2. In summary, Loan to Asset ratio is financial metric compares bank total loans to total assets. It's used to measure bank leverage assess the level of risk associated with lending activities. Higher Loan to Assets ratio indicates that a bank is more heavily reliant on lending and is more leveraged and risky, while a lower ratio indicates that the bank is less risky. Let's look at example Bank has total assets ₹1,00,000 crore, total loans ₹70,000 crore. to get Loan to Assets Ratio we divide the total loans by the total assets. Loan to Asset Ratio = Total Loans / Total Assets Loan to Asset Ratio = ₹70,000 crore / ₹1,00,000 crore. Loan to Asset Ratio = 0.7. Bank's Loan to Assets Ratio is 0.7 / 70% (0.7*100) bank assets in form of loans. A higher Ratio indicates that bank is heavily invested in lending activities, which can be sign of more aggressive lending strategy. it's also increases the risk of default. Than higher risk of NPA. Banks required to maintain minimum level of Capital Adequacy Ratio as per the Reserve Bank of India's (RBI) guidelines. -=-=-=-= 4. Return on Assets Ratio (ROA) 1. Return on Assets = Net Income / Total Assets 2. The higher ratio means assets are well managed and low ratio means resources didn't used effectively compared to the industry and competitors. 3. In summary, ROA is financial ratio measures profitability of company in relation to total assets. It is calculated by dividing the company's net income by its total assets. This ratio is useful to compare the performance of company with its peers in the same industry. It is an important metric used to evaluate a company's overall efficiency and performance but it's important to keep in mind that high ROA not necessarily mean that company have strong financial position. Let's look at example Bank has total assets of ₹100 billion and net income of ₹5 billion. To get ROA we divide the net income by total assets. ROA = Net Income / Total Assets ROA = ₹5 billion / ₹100 billion ROA = 0.05 or 5%. Bank ROA is 5% For every ₹100 billion of assets, the bank generates ₹5 billion of net income. Higher ROA show that bank is profitable and efficient in utilizing assets. It's important to note this ratio is sensitive to the size of the bank It's better to compare the ROA of a bank with other banks of similar size. -=-=-=-= 5. Capital Adequacy Ratio 1. The Capital Adequacy Ratio helps make sure banks have enough capital to protect depositors money. 2. Banks are required to maintain a certain level of Capital Adequacy Ratio as per the regulations set by central bank to ensure that they have sufficient capital to meet the potential losses and continue their operations even in adverse situations. 3. It helps maintain the stability of the financial system by ensuring that banks can withstand in unexpected situation. Let's look at example In India, the Reserve Bank of India (RBI) sets the minimum Capital Adequacy Ratio for banks at 9%. which means that they must hold capital worth at least 9% of their total risk-weighted assets. Bank in India with total assets of ₹‎100 billion and risk-weighted assets of ₹‎80 billion must maintain minimum capital of ₹‎7.2 billion (9% of ₹‎80 billion) to meet the Capital Adequacy Ratio requirement set by the RBI. It's important to note that, the Banks with a higher Capital Adequacy Ratio are considered to have a better ability to absorb unexpected losses. -=-=-=-= 6. Gross NPA 1. Gross Non Performing Assets (GNPA) is refer to the total value of loans or advances that have been classified as Non Performing Assets. These are loans or advances the borrower has defaulted on repayment or interest for certain time. loan is classified as an NPA if the borrower has not made any payment for period of 90 days or more. 2. A high ratio of GNPA to total loans indicates a higher level of credit risk and potentially weaker financial condition for the bank. Let's look at example Bank has total loans of ₹‎100 billion and ₹‎20 billion are classified Non Performing Assets (NPA). The bank Gross Non Performing Assets (GNPA) would be INR 20 billion. we see the ratio of GNPA to total loans we get 0.2 (₹‎20 billion / ₹‎100 billion). This ratio of 20% indicates that 20% of the bank loans are classified as NPA. This high ratio may indicate the bank is facing high level of credit risk it could be cause for concern. It's important to note that Gross NPA ratio is used in conjunction with other financial indicators to understand overall financial health of bank and single indicator may not enough to make a conclusion. -=-=-=-= 7. Net NPA 1. Any financial security owned by a bank is considered an asset. The interest we pay on loans is the primary source of income for banks these loans are classified as assets for bank's. when borrowers can't repay the amount these assets are classified as Non Performing Assets (NPA) because they are not generating any income for the bank's. 2.If loan provided by bank is overdue more than 90 days from the borrower end comes under NPA. If loan amount is unpaid more than 1 year from due date then it's a doubtful debt and if it’s unpaid more than 3 years then loss of an asset or default account. Net Non-Performing Asset = Gross NPA – Provisions. Gross NPA = Total Gross NPA/Total Loans given. Impact of NPA Due to higher NPA rates, banks will suffer significant revenue losses that will potentially affect their brand image. insufficient funds, banks will have to increase the interest rates on loans to maintain their profit margin. Let's look at example Bank has total loans of ₹100 billion and ₹20 billion are classified as Non Performing Assets (NPA). The bank is required to make provisions for ₹10 billion against these NPA. The bank Gross Non-Performing Assets (GNPA) would be ₹20 billion and Net Non Performing Assets (Net NPA) would be ₹10 billion (₹20 billion - ₹10 billion). If we see the ratio of Net NPA to total loans we get 0.1 (INR 10 billion / INR 100 billion). This ratio of 10% indicates that 10% of the bank's loans classified as NPA after making necessary provisioning. This ratio gives a clearer picture of bank's financial health than just Gross NPA ratio as it takes into account the provisions made against NPA. -=-=-=-= 8. CASA Ratio 1. CASA (Current Account and Saving Account) it is measure the proportion of bank deposits that are in the form of current and savings accounts. 2. The ratio is calculated by dividing the total value of current and savings account deposits by the total deposits. It is typically expressed as percentage. Higher CASA ratio indicates that bank have larger proportion of stable deposits. This is because banks can use these deposits to fund their lending activities at a lower cost which improves bank's net interest margin. Let's look at example Bank has total deposits of ₹200 billion and ₹150 billion in form of current and savings accounts. The bank CASA ratio would be 75%. This ratio indicates that three fourth of the bank deposits are in the form of current and savings accounts which are considered the stable form of deposits. This high ratio is considered positive sign. Stable deposits can used to fund lending activities lower cost. High CASA ratio the bank will have access to cheaper funding which will improve it's net interest margin. This means that the bank will be able to offer loans at a lower rate of interest. which will make it more competitive in the market and attract more customers. And bank will also have more stable funding which will make it less vulnerable to market fluctuations and interest rate changes. Asset quality, capital adequacy play important roles in assessing a bank's overall financial condition. -=-=-=-= 9. Cost to Income ratio 1. Cost to Income Ratio (CIR) measure company efficiency by comparing it's operating expenses to it's revenue. calculated by dividing the total operating expenses by the total revenue and expressed in percentage. 2. Lower (CIR) indicates that company more efficient in managing expenses and able to generate more income for every unit of expenses. while higher (CIR) indicates that company less efficient in managing it's expenses and is generating less income for every unit of expenses. Let's look at example Bank A with a high CIR. Bank has total operating expenses of ₹10 billion and total revenue of ₹15 billion. The bank's CIR is 67% (₹10 billion / ₹15 billion). High CIR indicates that the bank is not very efficient in managing its expenses and is generating less income for every unit of expenses. The bank may need to review its cost structure and implement measures to reduce expenses in order to increase its efficiency and profitability. Bank B with a low CIR: A bank has total operating expenses of ₹5 billion and total revenue of ₹15 billion. The bank CIR is 33% (₹5 billion / ₹15 billion). This low CIR indicates that the bank is efficient in managing its expenses and is able to generate more income for every unit of expenses. The bank able to invest in growth opportunities and increase profitability. I hope you found this helpful. Please like and comment. Keep Learning, Thank you for reading!
NSE:HDFCBANKEducation
by NARAYANTAPARIA
24
ICICI Bank (Bullish Structure)NSE:ICICIBANK Hi Everyone This is an chart of ICICI Bank same as the structure of Bank Nifty where we are in a bullish trend which has been extended. Currently we are in L series in which we have completed 5 wave structure in M series, but rally has been extended and we are again in M series. Completed wave M1 and we are in correction of wave M 2. We likely to go up as long as we are above invalidation Level. Note- We soon be providing trading view live links for update of trail sl and further neowave counts. Coming soon features. 1) An Neowave Library 2) Video Updates 3) Education series Thank You. If you are an our new subscribers, you wondering what is L and M. Kindly see the below chart for our coding style and click on it to view it in details.
NSE:ICICIBANKLong
by Neowave-forecast
Bankbaroda | Breakout of channel pattern for 66% 🎯⭕ Positional Trading opportunity ! weekly Chart Alert !!!⭕ --Buy above =67.60 or CMP --Target = 112.60 --Stop-loss = 52.20 --R:R =2.92 --Expected Profit = (66 % ) --Expected Holding = 1-3 Months only #ThankU For Checking Out Our Content , We Hope U Liked IT 📌 ====================================================== ⭕Technical Reasons to trade or Strategy applied :- ⭕ 1) Bank of Baroda has given the breakout & possibly retest again so, one can wait for it or else buy a little quantity here & buy more after retest 2) Volume activities in all the psu bank is very large & they can show a big move ahead 3) Target is based on the pattern height 4) 36 weeks of Accumulation with double bottom Guys check out the related ideas as well, it will work really well GUARANTEED ! 🙏FOLLOW for more ! 👍LIKE if think is useful ! ✍COMMENT Below your view !
NSE:BANKBARODALong
by ReviveTraders
14