BANK
STOCKS OUTLOOK FOR THE WEEK – 25 TO 28.08.2014
( www.rupeedesk.in )
Bank stocks are
likely to continue with their positive momentum next week. However,
likely volatility
ahead of the expiry of the August futures and options contract on
Thursday may keep
gains in check. Thursday will also be the last trading day for the
week as markets
remain shut for Ganesh Chaturthi on Friday.
Yesterday Bank Nifty
hit a lifetime high of 15865.30 points, before ending 1% higher at
15819.15 points.We
expect see 15400 as a strong support for Bank Nifty and peg the
resistance level at
16200.
We believe IT
(information technology), Auto and Banking would continue to perform
better in near future
so one can choose frontline counters from these pivots for fresh
buying these stocks.
On Thursday, bank
stocks may react to government's financial inclusion plan, which will
be detailed by Prime
Minister Narendra Modi. The plan named Pradhan Mantri Jan-Dhan
Yojna, aims to
provide every household at least one bank account, which will have a
insurance over of
100,000 rupees and overdraft facility of 5,000 rupees.
Among stock specific,
HDFC Bank will be in focus on Monday after media report, post
market hours
yesterday, suggested that private-sector lender has made a fresh application
to the government to
hike foreign investment limit in the bank.
Punjab & Sind
Bank may also see some action on Monday. Post market hours
yesterday, the
Delhi-based lender informed exchanges that it will seek shareholders'
approval to allot
equity stocks amounting up to 4 bln rupees to Life Insurance Corp of
India, and General
Insurance Corp, among others, on a preferential basis. Bank's
Extraordinary General
Meeting is scheduled on Sep 19