Check with the Pvt Hedge Funds list to clients for May 2016. There is no mention of any support above $15,
You are likely to be right. We have seen the high for 2015. Time is against the Longs because of enviro consideration and escalating clean up costs.
These costs increase with time and have to be addressed one day.
Just analyse the DFA and you will see they are as bad as the State owned banks.
The only saving grace is that the Public are still depositing their savings with IBN and helping to maintain their Cap ratio.
Audi: Correct assessment. IBN is in a nepotism trap. The trap works as follows.
You are a privileged person with Party contacts.You approach your contacts asking them to recommend you to the Banker for a king size loan against an Asset which you prize three times the market value. You get a friendly Broker to come up with a fake bid for the asset at 2.5 times the going rate for a small fee but you don't sell.
Your contact tells the Bank CEO/Manager about a fabulous investment and how the Bank will be rewarded for the Make in India awards but he should be discreet as the asset is worth even more.
The Bank grants the mega loan . The client defaults after a couple of payments and the Bank then realises it was taken for a ride.
Banks in the East have a lot of such loans which they doled out hoping to get a few National awards and jobs for their kin in return.
The D.B is suspect because on the second bottom the Volume is less than the first. You need volume on the uptick.
My F.A says the Pvt Hedge Funds have not advised their clients to cover. He expects there will be another test
and it will be a BUY when the uptick Volume exceeds the first D B volume.
Keeping my powder dry
Will result in more losses in coming weeks.
The only Country in the world with an ever increasing public sector is India. This has resulted in wasteful schemes and investments in which IBN participation is so eagerly sought by the Govt.
This is the main reason why the Bank continues to increase its NPA.
Looks like a false move. There is no volume which indicates Shorts are awaiting another down leg..
We must see an uptick in volume to prove the bottom.is forreal.
I was told Pvt Hedge funds have advised heir clients to cover near $72 level. some time in the next month. We need to show volume if this a bottom. I don't believe we are there yet.
Good luck nevertheless.
It was because of the overhyped new FDA approved drug.
There is no demand at the price set out earlier. They are forced to give it away free to entice patients to use the drug. If the demand is good they intend to slowly milk that cow.!
For the present, they get no rev only expense from that new Drug. Hence the sell off.
The banks growth performance is pathetic.
To get higher premiums it lent very large loans to Cronies of the Govt whose bonafides were doubtful. As a result, it is saddled with NPA's that will take atleast 3 years to wittle down to zero.
The present CEO needs to be replaced with new blood as her performance has been sub par. Hedge funds shorting are only exploiting the stupidity of Mgmt..
All the Banks including IBN have NPA's yet to be written off. The progress is extremely slow as their annual income growth is not sufficient to cover dividends and the write down of these NPA's
It will take them atleast twomore years. Meanwhile, they are under pressure to lend large amounts to Companies seeking infrastructure loans which will once agin result in more NPa's as historically Telephones , roads and Trnsport have been steady money losers.
The market for Bulls just prior to the monsoon is quite flat as the animals are required for ploughing the fields.
However it does pick up after the monsoon if that is on time etc.