Bank Stocks Outlook
May trade in range, take cues from Budget
This story was originally published at 21:01 IST on 19 July 2024
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MUMBAI – Movement in shares of banks is expected to be range-bound next week. The stocks will take cues from the broader market and from announcements in the Union Budget for 2024-25 (Apr-Mar), which will be presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday.
As far as the banking sector is concerned, analysts expect tax relief in the Budget on deposits and home loans. Market players are also expecting the announcement of a dedicated refinancing entity for non-banking financial companies and anticipating measures to promote digitalisation and enhance cybersecurity.
Investors will also analyse the June quarter results of HDFC Bank, Kotak Mahindra Bank, RBL Bank, and YES Bank, set to be announced Saturday.
Analysts expect the Nifty Bank index to trade in a range within the 52000–53000 points levels. Stocks like State Bank of India, ICICI Bank, and HDFC Bank are likely to display strength.
"Ahead of the monthly expiry, a cautious view is advised. Additionally, as per the derivatives' data, the levels of 52000 and 51500 are likely to act as a demand zone. Bias remains bullish for the week," Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities Ltd, said.
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Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| AU Small Finance Bank | 633.65 | (-)1.60 | 641.60 | 621.20 |
| Axis Bank | 1292.35 | (-)1.90 | 1317.30 | 1275.70 |
| Bandhan Bank | 192.45 | (-)0.10 | 198.00 | 188.20 |
| Federal Bank | 191.47 | (-)2.10 | 199.30 | 186.90 |
| HDFC Bank | 1607.30 | (-)1.00 | 1630.80 | 1591.80 |
| ICICI Bank | 1248.65 | 1.30 | 1256.70 | 1236.20 |
| IDFC First Bank | 76.02 | (-)2.90 | 78.60 | 74.60 |
| IndusInd Bank | 1432.45 | (-)0.20 | 1460.80 | 1414.80 |
| Kotak Mahindra Bank | 1821.60 | (-)0.60 | 1844.60 | 1794.50 |
| Punjab National Bank | 116.51 | (-)1.00 | 121.10 | 113.90 |
| RBL Bank | 240.35 | (-)2.30 | 247.30 | 235.60 |
| State Bank of India | 889.35 | 3.50 | 906.30 | 874.90 |
| Nifty Bank | 52265.60 | (-)0.00 | 52773.30 | 51892.40 |
| Nifty 50 | 24530.90 | 0.10 | 24977.90 | 24284.60 |
| S&P BSE Sensex | 80604.65 | 0.10 | 81985.80 | 79808.50 |
End
Reported by Richard Fargose
Edited by Rajeev Pai
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