Bank Stocks Outlook
Nifty Bank to bounce back next week; earnings in focus
This story was originally published at 22:45 IST on 25 October 2024
Register to read our real-time news.Informist, Friday, Oct. 25, 2024
MUMBAI – Analysts expect to see a bounceback in the Bank Nifty next week and peg resistance for the index at 51,000 points. "As long as Bank Nifty respects 50,380, a bounce to 51,000 is feasible, but it should be used for profit booking. Sustaining below 50,380 might push Bank Nifty to thresholds of 50000," Hrishikesh Yedve, senior technical analyst at Asit C. Mehta Investment Interrmediates Ltd., said in a note. On the National Stock Exchange, the Nifty Bank closed 1.4% lower at 50787.45 points on Friday. During the week, the index slumped 2.5%.
"Bank Nifty witnessed a severe decline and closed down 744 points. The structure is weak and is now aligning with the broader market. On the downside we expect Bank Nifty to drift lower towards 49500-49400 from short term perspective," Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, said in a note.
With earnings in full swing, analysts are watchful on the growth in unsecured segments such as microfinance and credit card segments. "The asset quality issue in the unsecured loan segment is causing earnings downgrades in financials and some banks. Hence, it is likely that the earnings estimates of FY2025 (financial year 2024-25) and FY2026 could get downgraded in this results season," Sharekhan said in a note.
Shares of ICICI Bank and IDFC FIRST Bank will be in focus as they will announce their earnings for the quarter ended September on Saturday. Punjab National Bank, Federal Bank, and Canara Bank are all set to announce their quarterly results next week.
TOP HEADLINES
* Analyst Concall: IndusInd Bank MD sees pickup in microfin disbursals Oct-Dec
* Axis Bank gets RBI's approval for re-appointment of Chaudhry as MD, CEO
* Earnings Review: CSB Bank Jul-Sept PAT up just 4% YoY, NIM drops to 4.30%
* Earnings Review: IndusInd Bank PAT down 39% YoY on sharp rise in provisions
* IndusInd Bank aims to start MF operations in six months, says MD
* Banks, NBFCs' loan growth to moderate FY25 on regulatory concerns, says ICRA
* Earnings Outlook: ICICI Bank net profit seen rising 7% on higher loan growth
* CRISIL says RBI's stringent supervision to curb gold loan growth
* Union Bank MD sees muted corp sector loan growth, no big projects coming up
* Earnings Outlook: DCB Bank PAT seen up 10.5% YoY on robust growth in loans
* Earnings Outlook: Federal Bank PAT seen up just 4% as operating expense rise
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| AU Small Finance Bank | 604.5 | (-)11.60 | 650.70 | 576.20 |
| Axis Bank | 1189.35 | (-)0.60 | 1218.80 | 1155.30 |
| Federal Bank | 186.24 | (-)4.60 | 194.00 | 178.80 |
| HDFC Bank | 1743.40 | 3.70 | 1772.50 | 1714.20 |
| ICICI Bank | 1255.45 | (-)0.70 | 1287.60 | 1218.20 |
| IDFC First Bank | 65.50 | (-)8.50 | 69.00 | 63.40 |
| IndusInd Bank | 1041.60 | (-)22.70 | 1219.20 | 936.70 |
| Kotak Mahindra Bank | 1768.85 | (-)5.50 | 1800.30 | 1741.30 |
| Punjab National Bank | 95.72 | (-)7.30 | 102.20 | 90.00 |
| State Bank of India | 780.95 | (-)4.80 | 813.30 | 755.80 |
| Nifty Bank | 50787.45 | (-)2.50 | 52009.20 | 49771.30 |
| Nifty 50 | 24180.80 | (-)2.70 | 24598.00 | 23865.30 |
| S&P BSE Sensex | 79402.29 | (-)2.20 | 80713.00 | 78482.60 |
End
Reported by Kshipra Petkar
Edited by Manisha Baxla
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