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Informist, Saturday, Feb. 1, 2025

MUMBAI – Analysts are bullish on the Bank Nifty for next week, and see the index touching 50500 points. On Saturday, the index closed 0.2% lower at 49506.95 points on the National Stock Exchange. During the week, the index rose 2.4%.

"For Bank Nifty, as long as it is trading above its 20-day SMA or 49,000, the bullish formation is likely to continue. On the higher side, 50,250 and 50,500 would be the key resistance zones for traders," Shrikant Chouhan, head equity research at Kotak Securities, said in a note.

The Union Budget for 2025-26 (Apr-Mar), presented by Finance Minister Nirmala Sitharaman on Saturday, targeted a fiscal deficit of 4.4% of GDP for FY26, and lowered the target for FY25 by 10 basis points to 4.8% of GDP. The Budget focussed on several sectors such as agriculture, consumer, MSMEs, and renewables.

"Overall, the Budget is in line with our expectations, and a prudent outcome. The growth impulse from the Budget should be marginally positive for FY26, in our view. Fiscal prudence will keep India's fiscal risk premia low and provide greater leeway to the RBI to begin lowering its policy rate at the February MPC," Sonal Varma, chief economist at Nomura, said in a note. The Reserve Bank of India will announce the outcome of the Monetary Policy Committee's meeting on Friday. In the outcome of the December Monetary Policy Committee meeting, RBI kept the repo rate unchanged at 6.50% and maintained a neutral stance.

Shares of State Bank of India will also be in focus as the bank will detail its Oct-Dec earnings on Thursday. As per the average of the estimates of 12 brokerage firms, the bank's net profit is seen rising over 78% on year to INR 163.61 billion for the quarter ended December. However, on a sequential basis, the net profit is seen falling by 10.8%. Net interest income is seen rising 6.8% on year and 2.1% on quarter to INR 425.09 billion for the reporting quarter, according to the average of estimates from 12 brokerages. 

"We expect (SBI) NIMs to remain largely flat which, coupled with contained staff costs, should support profitability. Slippages will be lower QoQ due to lower agri stress, but slightly higher YoY due to recognition of MTNL as NPA," Emkay Global said in its pre-earnings report. Shares of State Bank of India closed 0.9% lower at INR 766 on the National Stock Exchange on Saturday. During the week, shares of the bank rose 2.9%.

TOP HEADLINES

* BUDGET: FY26 RBI surplus, PSU bank dividend seen at INR 2.56 tln, up 9% YoY
* YES Bank gets INR 14.80 bln towards repayment of outstanding project loan
* Analyst Concall:See recovery of INR 50 bln-INR 60 bln Jan-Mar, says PNB mgmt
* Analyst Concall: IndusInd Bank aims microfinance book at 8-10% of total book
* Bank of Baroda trims FY25 net interest margin guidance to 3.0-3.1%
* Bandhan Bank board appoints Sundeep Bhan as interim chief risk officer
* Union Bk trims FY25 deposit, credit growth guidance on cut in bulk deposits
* ICICI Bank expects NIM to remain stable until interest rate cut by RBI
* Need another aggregator to protect financial cos from frauds - Banking secy

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 Avishek Dutta

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