Bank Stocks Outlook
Mixed bias for Nifty Bank; earnings to lend cues
This story was originally published at 21:39 IST on 26 July 2024
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MUMBAI – The bias for banking stocks is seen mixed next week with ICICI Bank, IDFC First Bank, and Punjab National Bank set to announce Apr-Jun results on Saturday, analysts said. Nifty Bank ended 0.9% higher at 51295.95 today after remaining in the red for the previous three sessions.
According to an average of estimates by brokerages, the net profit of ICICI Bank is seen rising 10% on year, weighed down by a contraction in net interest margin, while IDFC FIRST Bank's net profit is seen contracting 8% on year due to a rise in operating expenses. Punjab National Bank is expected to report a 140% year-on-year jump due to lower provisions.
Analysts pegged the support for the index at 50,084 points and resistance at 51,296-52000 points. "For the week, we anticipate a pullback and a rebound in the index. The uptrend will only resume with a definitive close above 53,000 marks," Brijesh Ail, technical analyst at IDBI Capital said.
Analysts also said that based on derivative data, Kotak Mahindra Bank, Bandhan Bank, and Federal Bank are showing positive signs.
Shares of Bank of Baroda will also react to earnings, scheduled for next week.
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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 | 650.4 | 2.60 | 672.90 | 609.30 |
| Axis Bank | 1177.35 | (-)8.90 | 1199.80 | 1144.00 |
| Bandhan Bank | 192.50 | 0.00 | 198.70 | 181.70 |
| Federal Bank | 198.00 | 3.40 | 203.20 | 190.40 |
| HDFC Bank | 1618.15 | 0.70 | 1637.40 | 1586.80 |
| ICICI Bank | 1207.20 | (-)3.30 | 1238.40 | 1170.30 |
| IDFC First Bank | 74.48 | (-)2.00 | 76.50 | 71.40 |
| IndusInd Bank | 1403.90 | (-)2.00 | 1440.60 | 1340.70 |
| Kotak Mahindra Bank | 1813.85 | (-)0.40 | 1872.40 | 1728.90 |
| Punjab National Bank | 119.95 | 3.00 | 122.40 | 115.80 |
| RBL Bank | 235.85 | (-)1.90 | 243.60 | 223.20 |
| State Bank of India | 862.45 | (-)3.00 | 877.20 | 836.70 |
| Nifty Bank | 51295.95 | (-)1.90 | 52004.60 | 50084.00 |
| Nifty 50 | 24834.85 | 1.20 | 25152.60 | 24252.10 |
| S&P BSE Sensex | 81332.72 | 0.90 | 82338.10 | 79510.90 |
End
Reported by Kshipra Petkar
Edited by Saji George Titus
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