Buy DCB futures at Rs 44: VK Sharma

Buy DCB futures at 44, says VK Sharma, HDFC Securities.

Sharma told CNBC-TV18, "The banking space is looking good. The Bank Nifty has done well. But on the day when the other large caps have done well, I think it might be time of small caps to do well. So perhaps looking at something like Development Credit Bank (DCB), which showed an open interest increase of around 11%, and also technically it had gone up by 3%. So buying the futures somewhere around Rs 44, with the stoploss at 43.20, and you can hope to make something like Rs 3 on this. So you can sell this at Rs 46. So that is in the derivative space and also looks good." The company's trailing 12-month (TTM) EPS was at Rs 0.10 per share. (Dec, 2010). The stock's price-to-earnings (P/E) ratio was 455.00. The latest book value of the company is Rs 27.00 per share. At current value, the price-to-book value of the company was 1.69.