Bank Stocks Outlook
Bias seen positive next wk, Bank Nifty may touch 55000
This story was originally published at 20:07 IST on 6 December 2024
Register to read our real-time news.Informist, Friday, Dec. 6, 2024
MUMBAI – Analysts have a positive bias on banking shares, with the Reserve Bank of India cutting the cash reserve ratio by 50 basis points to 4.00% to boost banking system liquidity. The cut will release primary liquidity of about INR 1.16 trillion into the banking system. The RBI's Monetary Policy Committee kept the repo rate unchanged at 6.50% and maintained the stance as neutral.
"This initiative is expected to alleviate money market rates, enhance banks' net interest margins, and facilitate more efficient and swift rate transmission to lending," VRC Reddy, head of treasury at Karur Vysya Bank said in a note.
Though the Bank Nifty closed 0.2% lower at 53509.50 points on Friday, it outperformed the benchmark equity indices during the week. The Bank Nifty rose 2.8% during the week compared with 2.3% rise in the Nifty 50.
On specific stocks, Bank of Baroda, Punjab National Bank, Bandhan Bank, and Axis Bank, along with HDFC Bank and State Bank of India, showed robust recovery, Brijesh Ail, senior technical analyst at IDBI Capital Markets and Securities said in a note. "The trend and momentum have turned positive, with private banks positioned favourably. We anticipate the index to rally toward 55000 levels, with support at the 52500 mark for the week," Ail said.
TOP HEADLINES
* RBI Policy: RBI hikes collateral-free agri loan limit to INR 200,000
* RBI Policy:Aim is to ensure orderly conduct of business by bks - Swaminathan
* RBI Policy:Have to proceed carefully on project finance, LCR norms, says Das
* RBI Policy: Interest rate ceiling on 1-5 yr FCNR(B) deposit hiked by 150 bps
* RBI OKs Canara Bk to divest 13% shareholding in Canara Robeco AMC via IPO
* ICRA says significant downside risks to microfin asset quality in near term
* SBI invites expressions of interest for transfer of stressed loan exposures
* Fin min, PSU bks discuss steps to expedite investigation in bank fraud cases
* RBI advises banks to urgently bring down number of frozen accounts
* Punjab & Sind Bk may raise up to INR 30 bln via infra bond post MPC meet
* PRESS: SBI to launch 'Har Ghar Lakhpati' scheme to boost deposits growth
* Personal loan growth continues to moderate, gold loans jump 56% as of Oct 18
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 | 587.4 | 0.70 | 608.10 | 575.20 |
| Axis Bank | 1184.55 | 4.30 | 1213.30 | 1145.60 |
| Bank of Baroda | 264.60 | 7.40 | 272.10 | 254.20 |
| Canara Bank | 109.32 | 7.20 | 112.40 | 106.20 |
| Federal Bank | 213.40 | 1.20 | 217.20 | 209.30 |
| HDFC Bank | 1855.85 | 3.30 | 1874.90 | 1834.50 |
| ICICI Bank | 1328.75 | 2.20 | 1354.60 | 1313.80 |
| IDFC FIRST Bank | 65.90 | 2.80 | 66.80 | 65.10 |
| IndusInd Bank | 990.35 | (-)0.60 | 1010.00 | 976.50 |
| Kotak Mahindra Bank | 1776.95 | 0.70 | 1798.40 | 1750.30 |
| Punjab National Bank | 110.10 | 5.00 | 113.40 | 105.50 |
| State Bank of India | 863.65 | 2.90 | 883.80 | 846.90 |
| Nifty Bank | 53509.50 | 2.80 | 54220.70 | 52805.00 |
| Nifty 50 | 24677.80 | 2.30 | 24813.70 | 24552.60 |
| S&P BSE Sensex | 81709.12 | 2.40 | 82133.50 | 81294.00 |
End
Reported by Kshipra Petkar
Edited by Saji George Titus
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