Bank Stocks
Outlook for the Week – 22 to 26.09.2014
( www.rupeedesk.in )
Bank stocks are expected to move
with a positive bias next week, We seeing support for
Bank Nifty at 15997 and
resistance at 16309.
Yesterday, certain banking stocks
fell on profit-booking due to a general lack of triggers,
with State Bank of India, Punjab
National Bank and Bank of Baroda being the biggest
losers of the sector, losing 0.8-2.1%.
Stocks indices ended flat, reversing most of their
intraday gains.
The Bank Nifty settled at
16152.15 yesterday, registering a marginal 0.03% decline from
Thursday, but 0.63% down on week.
ICICI Bank is looking good for next
week.Yesterday, ICICI Bank ended
at 1,572.20 rupees on the National Stock Exchange,
0.46% higher from Thursday and
0.50% higher on week.
However, private banks had
exhausted all the earnings levers, and were unlikely to see
earnings upgrade in the near term
unless loan growth recovered meaningfully. Hence, we
relatively prefer large PSU banks
like SBI (State Bank of India) and PNB (Punjab
National Bank) which are in a
sweet spot as they could benefit from lower credit costs
leading to earnings upgrades
going forward. We are overweight on Bank of India given
the cheap multiples and advantage
to any 'proper' Capitalisation effort by the government.
