Bank Stocks Outlook
Sentiment remains weak, Axis Bank in focus
This story was originally published at 20:30 IST on 10 January 2025
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MUMBAI – Analysts expect the weak sentiment for bank stocks to continue next week. The Nifty Bank index Friday closed 48734.15 points, down 1.6% from the previous day. The index ended the week down 4.4%.
"For the Bank Nifty, the short-term formation is weak, and a pullback rally is possible only after a decisive break above 49500. If this level is surpassed, it could bounce back to the 50000-50200 range. Conversely, as long as it trades below 49600, weak sentiment is likely to continue. On the downside, 48300 and 48000 are key support zones for traders," Amol Athawale, vice president-technical research, Kotak Securities, said in a note.
Shares of Axis Bank will be in focus as the bank will announce its earnings for the quarter ended December on Thursday. On Friday, the stock closed nearly 2% lower at INR 1,040.70. The net profit of the bank is seen rising 5.6% on year to INR 64.09 billion in the quarter ended December, according to the average of estimates by 14 brokerages. Sequentially, however, the net profit is seen falling by over 7%.
In the overall banking sector, analysts expect a slowdown in loan growth and credit costs to rise, consequently weighing on the profitability of banks in the Oct-Dec quarter. Any commentary on the stress in microfinance and the unsecured segment and margins will be monitored, reports said.
TOP HEADLINES
* Bk of Baroda may raise up to INR 50 bln via infra bond next wk, say sources
* TREND: Softer credit growth, lower NIMs seen weighing on banks' PAT Oct-Dec
* Banking secy likely to review PSU bks' fincl performance Jan 15, says source
* HDFC Bank's gross advances up 3% on year to INR 25.43 tln as of Dec 31
* AU Small Fin Bank's advances up 5.2% on qtr as of Dec 31, deposits up 2.3%
* IndusInd Bank's net advances up 12% YoY as of Dec 31 , deposits up 11%
* Bk of India's domestic loans rise 15.0% YoY as of Dec 31, deposits up 13.3%
* Bk of Baroda domestic loans up 11.8% YoY as of Dec 31, deposits up 9.2% YoY
* IDFC FIRST Bank's advances rise 22% on year as of Dec 31, deposits up 29%
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 | 575.15 | 0.30 | 593.20 | 554.80 |
| Axis Bank | 1040.70 | (-)4.10 | 1075.40 | 1019.70 |
| Bank of Baroda | 225.40 | (-)6.70 | 233.30 | 221.00 |
| Canara Bank | 92.83 | (-)8.50 | 97.30 | 90.40 |
| Federal Bank | 189.10 | (-)7.90 | 196.50 | 183.40 |
| HDFC Bank | 1656.75 | (-)5.30 | 1682.80 | 1641.00 |
| ICICI Bank | 1249.85 | (-)1.20 | 1274.50 | 1230.80 |
| IDFC FIRST Bank | 60.39 | (-)7.20 | 63.30 | 58.80 |
| IndusInd Bank | 937.60 | (-)6.00 | 990.50 | 906.60 |
| Kotak Mahindra Bank | 1756.20 | (-)4.50 | 1802.70 | 1730.10 |
| Punjab National Bank | 98.64 | (-)7.30 | 103.20 | 96.10 |
| State Bank of India | 743.25 | (-)6.30 | 770.90 | 728.20 |
| Nifty Bank | 48734.15 | (-)4.40 | 49801.50 | 48097.60 |
| Nifty 50 | 23431.50 | (-)2.40 | 23709.70 | 23205.20 |
| S&P BSE Sensex | 77378.91 | (-)2.30 | 78286.20 | 76645.90 |
End
Reported by Kshipra Petkar
Edited by Ashish Shirke
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