General Trading Chat

Hi Smart Trade
I came to know that Lakshmi vilas bank is planning to sell its stake to investors. If it happens what will happen to the FD invested in this Bank. Could you please throw some lights?
https://economictimes.indiatimes.co...-strategic-investors/articleshow/65495778.cms
I was checking the FD interest rates and came to know that Lakshmi vilas bank has revised interest rates for FD to 8.6% for Senior citizen.
Is this a trick to increase their valuation of assets while selling stake to the new investor?
 
I was checking the FD interest rates and came to know that Lakshmi vilas bank has revised interest rates for FD to 8.6% for Senior citizen.
Is this a trick to increase their valuation of assets while selling stake to the new investor?
Senior citizens get nearly that across the board. They get 0.5% above the others.
 
Senior citizens get nearly that across the board. They get 0.5% above the others.
To my knowledge 8.6% is the highest interest rate for Senior citizen among other banks in india apart from small financing banks. Few months back they were providing 7.8% and later they increased to 8.1% and now they have increased to 8.6%. There are some news that they are in talks with 3 investors to finish the deal. So I was looking for clarification that this increase in FD interest rate to attract more FDs so that their asset quality will increase and there by their valuation of assets while selling it to new investor. I just want to know if the logic is correct?
 

travi

Well-Known Member
To my knowledge 8.6% is the highest interest rate for Senior citizen among other banks in india apart from small financing banks. Few months back they were providing 7.8% and later they increased to 8.1% and now they have increased to 8.6%. There are some news that they are in talks with 3 investors to finish the deal. So I was looking for clarification that this increase in FD interest rate to attract more FDs so that their asset quality will increase and there by their valuation of assets while selling it to new investor. I just want to know if the logic is correct?
Asset quality increases when their NPA's reduce afaik.

Money coming in by way of FD customers is not as important as money coming in timely from Loans and other borrowers.

If they hike FD to attract more customers, they will then loose a certain margin because they can't proportionately increase or recover by lending higher.
Then borrowers will go elsewhere.

So its unlikely that this FD increase is done to eyewash investors, they're also aware of such things.
FD rates in general have increased as base rates have been hiked, i'm just refering to the slight higher rate compared to competition.

A spike in cash flows in a Qtr is different as opposed to QoQ or YoY growth which are larger parameters for comparison.
 

lemondew

Well-Known Member
Updating chart.



In this timeframe bank nifty also has not started walking down. The thing I realise now is that whichever way things are moving but after some movement there is retracement. Retracement is something one needs to watch. If it is directional move than move in a direction supersedes the retracement. So persistent trades in a particular direction everytime there is momentum in our direction should beat the losses. So long as retracement is very less compared to major moves. If retracement is large then we are getting in problem territory.

Learned from STda in all his posts.hence posting my opinion.Rest he can add or clarify.

The probabilities of a successful breakout increases when price consolidates before/near the support resistance level.Also it depends on how it has traveled to that resistance area.If the move has been steep there are more chances that it might fail.Regarding the entry.If you are the aggresive type then you might take the close of the breakout candle.
A rather conservative approach would be to enter at the failure of retest of the support and resistance.If the breakout is strong with momentum there might not be a retest immediately and you may miss the entry.
Recent example BN broke the 200 EMA with strong momentum but did retest it untill last friday.
"The probabilities of a successful breakout increases when price consolidates " From what I understood he talks about trying to find out if the breakout would happen before it happens.


Bank nifty (spot) breakdown of 200 day ema happens on 21 st september. So enter short on friday 2 nov when it again comes to support area??
Is this what you mean. Just trying to understand exactly what you are saying. The words are can create a lot of confusion
 

lemondew

Well-Known Member
Nt,

I dunno if thats the problem
If we are in visual downtrend personally i would only take shorts no longs at all. Some might fail some might succeed. Overall it should work if we remain in visual downtrend.

What if we start shorting in every downturn and keep getting sls and visual downtrend becomes visual sideways or visual uptrend. May be some nack is required to guess how longer the visual trend would persist in any timeframe.

May be when trading lower tf downtrend hits an higher tf support or if trading tf move is extended time to be alert.
Thanks Sir for your reply.
If we consider VISUAL trend of 3/5 min , is that enough? I meant if we are in clear VISUAL UP OR DOWN, then we consider it trending market.&
If we are in visual sideways, we will look for BREAKOUT FAILURE/REJECTION?
Am I right in understanding?
Please write some detailed posts about those kinds of vph/vpl failure according to pivot methods also
thanks
 
Last edited:

Similar threads