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Informist, Friday, Nov. 22, 2024

MUMBAI – Analysts have a positive bias on Bank Nifty for next week and expect the index to touch the 52000 level, analysts said. They have pegged the support for the index at 50000 points. Friday, the index closed 1.5% higher at INR 51135.40 points on the National Stock Exchange.

"Index has broken the resistance of 50984 and sustained above it. If the index managed to hold 50980, then rally could extend towards 51500-52000 levels. Thus, in the short-term, buy-on-dips approach should be utilised," said Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities. During the week, the index was up nearly 2%.

Shares of State Bank of India rose 4.5% as concern over exposure to Adani group companies subsided, which had led to a fall in the stock price on Thursday. Sentiment was also positive after Jefferies reportedly maintained its 'buy' rating for SBI with the target price at INR 1,030. Shares of the bank closed at INR 816.05.

"Their (Adani group) overall exposure to Indian lenders is not enough to create significant problems for the banking system," a head of research with a top brokerage house said. The US authorities late Wednesday had charged Gautam Adani and seven others in a case that alleges they paid bribes totalling $265 million to Indian government officials to obtain solar power contracts in India.

The banking stocks were also affected during the week as Finance Minister Nirmala Sitharaman on Monday asked banks to stop misselling insurance products. "Banks will have to look at it with a lot more emphasis on their core banking activities and not burden customers with insurance which they don't require. Banks must prioritise transparency, ethical practices and clear communication strategies for us to earn the trust of the people," she said.

Comments made by Reserve Bank India Governor Shaktikanta Das on the build-up of concentrations in bank business models also affected the index. "Excessive reliance on specific sectors, markets, or customer segments can expose the bank to amplified risks, particularly in times of economic stress or industry shifts," Das had said in his address at the conference of directors of private sector banks on Monday. The central bank also asked banks to strengthen their cybersecurity and internal governance framework. 

Analysts said that on Monday, markets will react to the outcome of state assembly elections in Maharashtra and Jharkhand along with other global triggers including developments in the Russia-Ukraine war.

TOP HEADLINES
* ICRA, CRISIL assign 'AA+' rating to Axis Bank's tier-I bonds, outlook stable
* Govt may sell stake in 4 PSU bks to help them meet public shareholding norm
* Customer centricity to see supervisory focus in coming yrs - RBI Swaminathan
* Banks should not depend primarily on deposits to fund credit - banking secy
* Banks need to increase lending targets to MSMEs, says Sitharaman
* Oct-Mar to be better for bank in terms of deposit growth, says SBI Setty
* Excess reliance on some sectors can expose bks to amplified risks - RBI Das
* Ujjivan Small Fin Bk to sell NPAs, written-off loans of INR 2.70 bln to ARC
 

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:

End

Reported by Kshipra Petkar

Edited by Akul Nishant Akhoury

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