Investment_ RBL BankNamaste!
RBL Bank has been fell hard, since the change of CEO, correcting about 90% from the all time highs.
According to me, there can be 2 main reasons:-
1. The Market is wondering if the CEO is a idle choice. RBL Bank is a private sector bank, and CEO came from a Public Sector bank.
2. The market is also thinking if this could be next Yes Bank . But, this is a complete different scenario than Yes Bank. You see, in any bank, NPAs are a crucial factor to consider. If there are increased or more NPAs, it hits any bank hard.
In the Yes Bank, Mr. Rana and company has given very big loans to some of the big companies. The companies didn't became successful and didn't earned profit. So they defaulted their loans. And it is called NPAs (Non-performing Assets), or you can say a lost money. . Whereas, it is a very different case in the case of RBL bank, except the opportunity cost (if the new CEO takes more and more time to make and run RBL Bank successfully).
Investment:
Q: What is the investment price?
A: If the price moves at or above Rs 96.35
Q: What if it becomes the next Yes Bank?
A: Don't invest more than 10% of your entire capital. And Never sell it at a loss.
Positional:
Q: Can I take it as a positional trade? At what price?
A: At or above Rs 96.35. SL is Rs 82.35.
Q: What is the target.
A: You can do either of the 3 things. a: 3 times your risk amount (Rs 138.35), b: Rs 153, c: Rs 279.
Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment and trading carries an element of financial risk. Please do your analysis and/or consult your financial advisor before investing and trading.
