Federal Bank looks good for target of Rs 560: Bothra

Kunal Bothra, Sr Technical Analyst, LKP is of the view that, Federal Bank is an interesting pick in midcap space. Any break above Rs 525-530 one can look for a target of Rs 560 by keeping a very tight stop loss of Rs 510.

Bothra told CNBC-TV18, "Many of the frontline stocks are more or less sideways but the midcap stocks are building up a very good chart formation. Federal Bank is an interesting pick. If we look at the hourly charts it’s forming more or less sort of a pennant formation. Last three to four days have been consolidating but any break above Rs 525 and Rs 530 one can look for a target of Rs 560 on Federal Bank keeping a very tight stop loss of Rs 510." The company's trailing 12-month (TTM) EPS was at Rs 41.56 per share. (Sep, 2012). The stock's price-to-earnings (P/E) ratio was 12.53. The latest book value of the company is Rs 333.29 per share. At current value, the price-to-book value of the company was 1.56. The dividend yield of the company was 1.73%. Disclosure: I do not have any personal holdings in any of the stocks but at LKP we keep recommending these stocks to our clients.