Bank Stocks Outlook for the week – 06 to 10.03.2017
Bank Stocks Outlook for the week – 06 to 10.03.2017
( www.rupeedesk.in )
The Bank stocks are seen trading in a range next week, owing to lack of sector-specific triggers. However, a positive bias will be seen if the Nifty Bank index remains firm above the positional support level of 20200. The index is expected to find support at 20400-20500 and face resistance at 20800-20950 levels. We feel the outperformance in the banking stocks will pick up pace in the coming weeks. Any major selling in the index is likely to get arrested near 20200. Investors may remain on the sidelines till data on headline inflation for February is released by the Central Statistics Office on Mar 14. Interest-rate sensitive bank stocks take trading cues from retail inflation levels, as these provide indications of the Reserve Bank of India's monetary policy action. However, bank stocks might slide if market participants continue to book profits after benchmark indices hit 52-week highs on Thursday. Among individual stocks, State Bank of India and its listed subsidiaries--State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore--are likely to be in focus, as the parent bank has fixed Mar 17 as the record date for the merger of the associate banks with itself.
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Bank Stocks Outlook for the week – 06 to 10.03.2017
( www.rupeedesk.in )
The Bank stocks are seen trading in a range next week, owing to lack of sector-specific triggers. However, a positive bias will be seen if the Nifty Bank index remains firm above the positional support level of 20200. The index is expected to find support at 20400-20500 and face resistance at 20800-20950 levels. We feel the outperformance in the banking stocks will pick up pace in the coming weeks. Any major selling in the index is likely to get arrested near 20200. Investors may remain on the sidelines till data on headline inflation for February is released by the Central Statistics Office on Mar 14. Interest-rate sensitive bank stocks take trading cues from retail inflation levels, as these provide indications of the Reserve Bank of India's monetary policy action. However, bank stocks might slide if market participants continue to book profits after benchmark indices hit 52-week highs on Thursday. Among individual stocks, State Bank of India and its listed subsidiaries--State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore--are likely to be in focus, as the parent bank has fixed Mar 17 as the record date for the merger of the associate banks with itself.
