Bank Stocks Outlook
Seen tad dn amid high credit cost, slow growth
This story was originally published at 21:39 IST on 6 September 2024
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MUMBAI – The Bank Nifty will see some weakness next week, analysts said. The asset quality of public-sector banks is now normalising, and may lead to higher credit costs, an analyst with a Mumbai-based brokerage house who covers the sector, said. The analyst pointed out that rising credit costs and slower deposit growth are likely to slow down banks' growth and may even lead to downgrades.
Banking stocks were among the major losers today, with the Nifty Bank down nearly 2% and the Nifty PSU Bank down 3.6%.
"On the weekly scale, index has formed a bearish engulfing candle, which supports a negative bias. On the upside, the 50-Day Exponential Moving Average (DEMA), near 50,940, will act as an immediate hurdle," Hrishikesh Yedve, senior technical research analyst at Asit C. Mehta Investment Interrmediates Ltd. "Thus, any bounce near 50,940 should be used for booking profits. On the downside, 50,000 and 49,650 will serve as key support levels for Bank Nifty in the short term," he added.
TOP HEADLINES
* Deposits must be a bundled product, not generic one - Bk of Baroda MD
* Banks' credit exposure to NBFCs down 1.7% MoM in Jul, says CareEdge
* Former SBI chair suggests relooking at infra project, LCR provisions
* Banks confident about MSME lending post formalisation, says SBI Setty
* Federal Bank shareholders OK appointment of KV Subramanian as MD, CEO
* PRESS: New MSME credit assessment model for PSU bks likely in Mar
* Most banks not getting into 'rate war' for deposits, says SBI Setty
* CNBC-TV18: Bank slippages not at level of concern - RBI Swaminathan
* Govt nominates Nagaraju Maddirala as director on SBI board
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 | 703 | 2.10 | 718.00 | 692.50 |
| Axis Bank | 1158.75 | (-)1.40 | 1194.20 | 1133.10 |
| Bandhan Bank | 196.33 | (-)2.00 | 206.40 | 190.80 |
| Federal Bank | 183.45 | (-)5.80 | 192.90 | 177.70 |
| HDFC Bank | 1636.95 | 0.00 | 1653.30 | 1626.00 |
| ICICI Bank | 1208.15 | (-)1.70 | 1244.60 | 1186.80 |
| IDFC First Bank | 73.66 | (-)0.20 | 75.90 | 72.30 |
| IndusInd Bank | 1409.35 | (-)1.10 | 1453.10 | 1379.70 |
| Kotak Mahindra Bank | 1764.15 | (-)0.90 | 1793.00 | 1742.10 |
| Punjab National Bank | 110.00 | (-)5.60 | 114.30 | 107.60 |
| RBL Bank | 212.22 | (-)6.70 | 220.00 | 207.10 |
| State Bank of India | 782.50 | (-)4.10 | 826.70 | 754.90 |
| Nifty Bank | 50576.85 | (-)1.50 | 51734.20 | 49868.70 |
| Nifty 50 | 24852.15 | (-)1.50 | 25308.20 | 24573.30 |
| S&P BSE Sensex | 81183.93 | (-)1.40 | 82746.40 | 80200.70 |
End
Reported by Kshipra Petkar
Edited by Tanima Banerjee
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