Bank Stocks Outlook
Seen in a range; MPC meeting, earnings eyed
This story was originally published at 19:14 IST on 2 August 2024
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MUMBAI – Shares of banks may continue to trade in a range as they did this week, analysts said. Investors will take cues from the earnings of State Bank of India and Bank of India which are scheduled on Saturday.
Brokerages expect the net profit of State Bank of India to fall 18% from a quarter ago to 168.80 bln rupees due to a rise in provisions. "Some stress is expected due to the seasonally weak quarter and the bank's healthy retail, agriculture, and MSME segments, which may lead to a rise in provisions," Manish Chowdhury, head of research at StoxBox said in a note.
Bank Nifty closed 0.4% lower at 51350.15 on the National Stock Exchange. "Technically, the index is still consolidating in the band of around 51,000-52,300. Thus, it is advised to wait for a decisive breakout of this range, which will determine the further direction for the Bank Nifty," Hrishikesh Yedve, senior technical research analyst at Asit C. Mehta Investment Intermediates said in a note. During the week, the index rose 0.1%.
Investors also await the meeting of the Reserve Bank of India's Monetary Policy Committee next week. Market participants expect the committee to leave the repo rate and the monetary policy stance unchanged.
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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 | 637.6 | (-)2.00 | 656.80 | 625.90 |
| Axis Bank | 1160.85 | (-)1.40 | 1173.30 | 1149.90 |
| Bandhan Bank | 212.53 | 10.40 | 217.60 | 206.40 |
| Federal Bank | 197.71 | (-)0.20 | 201.60 | 195.20 |
| HDFC Bank | 1659.15 | 2.50 | 1693.10 | 1614.10 |
| ICICI Bank | 1196.55 | (-)0.90 | 1207.70 | 1184.60 |
| IDFC First Bank | 74.31 | (-)0.20 | 75.40 | 73.60 |
| IndusInd Bank | 1404.30 | 0.00 | 1424.90 | 1382.40 |
| Kotak Mahindra Bank | 1803.45 | (-)0.60 | 1831.20 | 1761.20 |
| Punjab National Bank | 120.26 | 0.30 | 122.60 | 118.40 |
| RBL Bank | 226.90 | (-)3.80 | 233.50 | 221.20 |
| State Bank of India | 847.85 | (-)1.70 | 862.90 | 838.60 |
| Nifty Bank | 51350.15 | 0.10 | 51869.80 | 50828.10 |
| Nifty 50 | 24717.70 | (-)0.50 | 24917.20 | 24587.10 |
| S&P BSE Sensex | 80981.95 | (-)0.40 | 81542.20 | 80588.80 |
End
Reported by Kshipra Petkar
Edited by Saji George Titus
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