A SAFE STOCK TO INVEST - IDBI
IDBI at price band of Rs 60 to 70 was trading in 10 to 15 crs F & O volume. As the volume dwindled to as low as 1 cr shares the stock was managing to hold at very close to its all time high. This in turn signified of IDBI counter becoming dry. This share had fallen along with others as the market saw a good drop but this can burst any moment. Buy now before it will start gaining momentum.
From reliable sources it is understood that investors close to political parties are accumulating IDBI and IFCI - this clearly suggests that unexpected news can flow in these 2 counters. Presumably Govt may announce a banking license in FICI whereas IDBI could be la SBI story and a rights issue is not discarded.
Another pattern which we have seen is that IDBI has made higher bottoms in every vallan and jumped to new high in every vallan. In Dec it had made bottom of 148 whereas in JAN it has made bottom of 159 which clearly indicate that the accumulation process is either completed and/or about to be completed.
Taking into account the various factors, it is recommended to invest in IDBI with a 6-9 months target of Rs 280 and 18-24 months of Rs 470