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Option contract

March 28, 2012 ஆக்கம் sknlakshmi

Dear Sir,

 

I hv bought ICICI Bank April2012 1000 Call Option at Rs.11. On 27th Mar, It was trading around Rs.7. I just want your View on This Stock price, Whether is there any Potential Upside Possible for ICICI bank to cross 930-950 mark. 

Should I hold till April Expiry? If so, Whats your Expected Target? Kindly advise me in this regard and Leet me know your overall View on Banking stocks in April.

 

Thanking You in advance.

Eswaran.R

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March 28, 2012 ஆக்கம் sknlakshmi, 1 year 7 வாரங்கள் முன்பு
விமர்சனம்:204

Financial year 2011-12 will be a noteworthy year for the banking industry as it has witnessed sharp 175  basis points increase in the policy rates and 125 basis points cut in CRR. During the year, Net market borrowings of the central government through dated securities increased to Rs4.36  lakh crore as against Rs3.25 lakh crore last year.   Reflecting the impact of increase in policy rates and higher amount of borrowing, the weighted average yield of issuance during 2011-12 has increased to 8.52% from 7.92% during 2010-11.

Besides RBI monetary policy reviews, proposal of Recapitalization of Public Sector banks in the Union Budget will also shore up capital adequacy ratio.  Following the rate cuts by RBI, many banks have revised their fixed deposit rates and lending rates.  However, concern over fears of increasing bad loans in a slowing economy weigh on banking industry.  Banks such as State Bank of India (SBI) and HDFC Bank paid higher taxes.

But ICICI Bank, paid marginally lower taxes. However, keeping in positive industrial outlook, you can hold the option contract till its expiry. 

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