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Informist, Friday, Jan. 3, 2025

MUMBAI – Bank stocks are likely to trade in a narrow range next week, analysts said. "The weekly structure of Bank Nifty is consolidating sideways. Technically, as long as 50000 levels are respected, a buy-on-dips strategy can be followed. However, if the index closes below 50000, further corrections may be expected. The bias for the upcoming week remains range-bound," Brijesh Ail, head technical and derivatives at IDBI Capital Markets & Securities, said.

On Friday, the Nifty Bank index closed 1.2% lower at 50988.80 points. The index ended the week lower by 0.6%. Next week, support for the index is seen at 50421.00 and resistance at 51955.50 points.

Shares of public sector banks rose after strong Oct-Dec business update from Punjab National Bank and Bank of Maharashtra. As on Dec. 31, Punjab National Bank's domestic advances grew 14.1% on year to INR 10.62 trillion and domestic deposits rose 14.4% on year to INR 14.75 trillion.

Shares of Bank of Baroda will be in focus as the pre-quarter business updates were released post-market hours Friday. The provisional figures on loan and deposit growth are in line with the guidance given last quarter. As on Dec. 31, the bank's domestic advances grew 11.8% on year to INR 9.63 trillion and domestic deposits grew 9.23% on year to INR 11.66 trillion. 

According to brokerage reports, credit growth of banks is expected to remain muted in Oct-Dec as they are reducing their exposure to unsecured retail and non-banking finance companies. ICRA revised its credit growth estimate for 2024-25 (Apr-Mar) downward to 10.5-11.0% from the earlier estimate of 12.5% and further reduced the estimate for FY26 to 9.7-10.3%.

TOP HEADLINES

* YES Bank's loans and advances up 12.6% on yr, deposits up 14.6% as of Dec 31
* Bank of Maharashtra's total business up 17% YoY in Oct-Dec at INR 5.08 tln
* PNB's global advances rise 15.0% YoY as of Dec 31, global deposits up 15.6%
* CSB Bank gross advances rise 26.5% on year as of Dec 31, deposits up 22.2%
* South Indian Bk gross advances up 11.9% on yr as of Dec 31, deposits up 6.3%
* CNBC-TV18: Interest rates on deposits have peaked, says SBI's Setty
* Bank of India invites bids to sell Visa Steel NPAs worth INR 656.4 mln
* PNB's MD, CEO position vacant after Atul Kumar Goel retires
* Credit growth to svcs sector continues to fall as loans to NBFCs dwindle
* Rajat Verma appointed CEO of DBS Bank India effective Mar 1
* RBI Report: Banking system LCR falls to 128.5% Sept-end vs 135.7% year ago

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 Ashish Shirke

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