Bank Stocks Outlook
Bank Nifty seen weak; provisional data in focus
This story was originally published at 20:58 IST on 27 September 2024
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MUMBAI – Shares of banks will be in focus, as their provisional figures for the quarter ended September will be released, analysts said. Today, the Nifty Bank index closed 1% lower at 53834.30 rupees on the National Stock Exchange. During the week, the index was flat.
"Bank Nifty might face an immediate hurdle near the psychological level of 54,000 and 54,500. In the short term, Bank nifty may witness some consolidation or profit taking but any dip around 53,350-53,400 will offer fresh buying opportunity in Bank Nifty. Thus, buy on dips strategy should be adopted in Bank Nifty for short to medium term," Hrishikesh Yedve, senior analyst at Asit C. Mehta Investment Interrmediates Ltd in a note.
"Q1 (Apr-Jun) saw varied performance across lenders. With persisting liability challenges, deposit momentum was sluggish this quarter, which sustained the strain on NIM (net interest margin) due to elevated funding cost. We expect this to continue in the coming quarter, which would strain core profitability," Elara Capital said in a report.
The report also said that analysts will watch out for growth in the corporate loan book for larger banks and credit costs as they might increase after the implementation of the expected credit loss guidelines in the near to medium term.
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* HDFC Bank arm HDB Fincl's board approves IPO with fresh issue, OFS
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 | 731.1 | (-)0.00 | 739.60 | 722.20 |
| Axis Bank | 1273.15 | 2.30 | 1295.00 | 1246.40 |
| Bandhan Bank | 203.22 | (-)3.30 | 208.70 | 199.50 |
| Federal Bank | 193.71 | 4.70 | 197.90 | 188.90 |
| HDFC Bank | 1752.65 | 0.70 | 1788.50 | 1732.10 |
| ICICI Bank | 1306.60 | (-)2.40 | 1343.60 | 1285.30 |
| IDFC First Bank | 74.19 | 1.90 | 75.40 | 73.20 |
| IndusInd Bank | 1462.70 | (-)1.20 | 1492.90 | 1438.90 |
| Kotak Mahindra Bank | 1872.45 | (-)1.70 | 1926.60 | 1839.20 |
| Punjab National Bank | 109.22 | 0.80 | 111.00 | 106.40 |
| RBL Bank | 207.52 | (-)2.50 | 213.40 | 204.20 |
| State Bank of India | 802.65 | 2.70 | 812.60 | 793.50 |
| Nifty Bank | 53834.30 | 0.10 | 54554.20 | 53403.20 |
| Nifty 50 | 26178.95 | 1.50 | 26328.50 | 26076.60 |
| S&P BSE Sensex | 85571.85 | 1.20 | 86178.60 | 85171.20 |
End
Reported by Kshipra Petkar
Edited by Vidhi Verma
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