{"id":679891,"date":"2013-03-15T09:48:22","date_gmt":"2013-03-15T04:18:22","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=679891"},"modified":"2013-03-15T09:56:05","modified_gmt":"2013-03-15T04:26:05","slug":"analysis-dcb","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/03\/15\/analysis-dcb\/","title":{"rendered":"Analysis: DCB"},"content":{"rendered":"

Today\u2019s pick is DCB [stockquote]DCB[\/stockquote]. The stock started the year with an upmove to Rs. 52, and following resistance, fell to Rs. 36 levels. The stock has been in this channel for the entire year now. It is currently on the lower side, and hence it can be said that it will try to reach the top once again. In the last three months, the stock moved -14%<\/strong><\/b> vs. a flat Nifty.<\/p>\n

\"DCB<\/a><\/p>\n

Oscillator RSI<\/a> and CMO<\/a> are currently in no-man\u2019s land. The stock is currently trading in the middle of the Bollinger band<\/a>s. Short-term technical just saw a 9×18 bullish<\/b> cross-over.<\/p>\n

The MACD<\/a> line and signal line are moving very close to each other in the positive direction, but the histogram levels are dropping. Also, the Long-term GMMA<\/a> lines are contracting to reverse the direction of the move, giving out a positive sign for the stock.<\/p>\n

\"DCB<\/a><\/p>\n

DCB\u2019s average correlation<\/a> with the Nifty<\/a> is 0.64,<\/b> which is positive <\/b>and quite strong<\/b>. The scrip will be closely replicating movement of Nifty. [stockquote]NIFTYBEES[\/stockquote]<\/p>\n

\"DCB<\/a><\/p>\n

DCB has a historical volatility<\/a> in the narrow range of 0.4 to 1.0. The scrip\u2019s volatility is currently in the lower end of the range.<\/p>\n

Globe capital has a buy call<\/a> based on fundamentals:<\/p>\n

\u00b7 The Bank reported Net Profit of Rs. 26.9 Cr. in Q3 FY 2013 against Rs. 15.6 Cr. last year<\/p>\n

\u00b7 Improved asset quality<\/p>\n

\u00b7 Focus on building low cost franchise<\/p>\n

\u00b7 Robust promoter background and experienced management team<\/p>\n

Given the technicals, we suggest a short-term BUY<\/b>. A longer term call could be taken based on stocks behavior near Rs.\u00a052 levels. Also, it is advisable to have a tight trailing stop-losses<\/a> level to book profits in case of a sudden trend-reversal.<\/p>\n

For a better picture of the NBFC sector as a whole, you can look at what the experts have to say here<\/a> and here<\/a>.<\/p>\n

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