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Buy ICICI Bank Relative Valuations Look Good

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Note: Part of newsletter sent on 04-September-2015 to my newsletter subscribers.

Frankly I do not like giving tips for paid or free. But sometimes its very tempting that I cannot stop myself. 🙂

Right now ICICI Bank is currently at 256, and is looking very attractive to buy.

It is almost 35% down from its recent high of 393.

There is NOTHING WRONG with the bank – so this is clear panic sell. Compare this to HDFC Bank and AXIS Bank. They are not that down. This is known as Relative Valuations. Bargain hunters look for it as well. 

According to WikiPedia:

Relative valuation also called valuation using multiples is a generic term that refers to the notion of comparing the price of an asset to the market value of similar assets. In the field of securities investment, the idea has led to important practical tools, which could presumably spot pricing anomalies. These tools have subsequently become instrumental in enabling analysts and investors to make vital decisions on asset allocation.

According to InvestoPedia.com:

A business valuation method that compares a firm’s value to that of its competitors to determine the firm’s financial worth. Relative valuation models are an alternative to absolute value models, which try to determine a company’s intrinsic worth based on its estimated future free cash flows discounted to their present value. Like absolute value models, investors may use relative valuation models when determining whether a company’s stock is a good buy.

If you have free cash you can buy ICICI Bank equity in cash for a quick 10-15% return probably in 2-3 months.


I hope you understand this very important thing – learn to diversify risk. This 10% profit will definitely come soon – but still you should know where to draw the line and how much to invest.

I have done a few things as well. Will share in a separate email.

What you should do now

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NOTE: Here is one more help. You can open a trading account in UPSTOX and send me a WhatsApp message on 9051143004. I will send you a FREE Equity Intraday Strategy that you can start trading and make approx 200 a day. You need 5000 to start trading this strategy.

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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.

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About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 15 comments… add one }
  • Amit Chowdhury

    As you r saying to buy icici wd u plz plz give some idea about Tata elxi as I have taken position ,apologized for without your advice I bought it
    Thanks in advance

    • Amit, no need to apologize. Sorry but I do not trade in companies that I am not comfortable with. I am a trader not speculator.

  • Pramod B

    Thanks a lot sir ji.

  • Anil Punjabi

    Dear Dilip ji,

    Thank you very much for helping me in understanding the most important rule of trading : Define your Risk & Reward ratios if you want to survive in the market.


    Anil Punjabi

    • Welcome Anil. That is the FIRST RULE of trading. People who follow survive, else they perish with a huge loss.

  • Sukanta Mitra

    What is you view about Amtek Auto?

    • Amtek Auto? No View. I do not trade such companies. For me they do not exist. Thank You.

      • Sukanta Mitra

        Actually I am stucked in this company bought 200 shares @ 129 should i hold or hold?

  • Ajit Wadkar

    Dear Dilip Sir,

    Kindly suggest strategies in the following circumstances:

    1)When we are sure that mkt will move either 50 to 100 points up or down but will not be stagnant.

    2)When we know that mkt will either go up 50 to 100 pts or remain above previous close but will not close below previous close.

    Thanks & Regards,

    Ajay Wadkar

    • Ajay, first tell me how do you know that? 🙂

      There are many strategies if you know what will happen.

  • Vijay Kumar

    Thank you for good advice
    Appreciate it.

  • marina s rao

    Dilip ji,


    Learning points from this post :

    Learn to diversify risk


    M S Rao

    • Diversifying risk is a very important chapter of making money from stock markets. Thanks.

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