Lakshmi Vilas Bank : Buy Recommendation

Jan 4th 2010
Tags: Buy - Sell - Hold

Lakshmi Vilas Bank : Buy Recommendation

Lakshmi Vilas Bank Ltd is one of the well known private sector banks in India. Research group Business Line recommends to BUY shares of Lakshmi Vilas Bank at present price level of Rs 84.1 for a short term horizon.

Recommend Price : Rs 84.15
Target Price : Rs 93.00
Stop Loss : Rs 79.5

It is evident from the charts of the stock that from its March 2009 low of Rs 51.5, it has been on a longer term uptrend forming higher peaks and troughs. Twin supports at around Rs 70 (a significant long-term support level ) arrested the stocks medium-term corrective decline that was in place between late September 2009 and late November 2009. The stock appears to have formed a solid base at around Rs 70 as it consolidated just above this support level for nearly three weeks and headed upwards. On December 24, the stock surged 6 per cent penetrating the downtrend line and 21-day moving average. Later on, it crossed over 50-day moving average, reinforcing the longer-term trend. We observe that the volumes are rising over the past four trading sessions. The daily relative strength index is hovering in the positive zone and weekly RSI has just entered this zone from the neutral region. The daily moving average convergence and divergence indicator has signalled a buy and is moving in the positive territory. Our short-tem outlook is bullish.

Stock Info :
Sector : Banking
Market Cap : Rs 821 crores
P/E : 16.32
EPS : Rs 5.16
Face Value : Rs 10.00
52 Week High / Low : 125 / 51.55
Lakshmi Vilas Bank’s share CMP is Rs 84.15 on 31st Dec 09