GOLDEN RULES FOR TRADING

Bank Stocks Outlook for the week – 14 to 18.09.2015 (Seen volatile next week; August CPI data eyed)

Bank Stocks Outlook for the week – 14 to 18.09.2015
(Seen volatile next week; August CPI data eyed)

Bank stocks are expected to remain volatile next week mirroring the broad market and added that investors are hoping for a benign inflation print, which, in turn, will fuel hopes for a repo rate cut by the Reserve Bank of India at its Sep 29 bi-monthly monetary policy meeting.

India's headline inflation rate based on the Consumer Price Index (Combined) is likely to fall to a
nine months low of 3.5% in August from 3.78% a month ago. The Central Statistics Office will detail the CPI (Combined) inflation data for August after market hours on Monday.

Separately, the Wholesale Price Index inflation data for August will also be released on the same day by the commerce and industry ministry. After release of the inflation data at the beginning of the week, market focus will shift to the US Federal Open Market Committee meeting, scheduled for Wednesday and Thursday.


Traders will be cautious ahead of the US Fed meet and will refrain from increasing their investments in stocks of banks. After falling for four consecutive weeks, the Bank Nifty was able to snap its downtrend, and ended 3% higher for the week at 16612.60. Buy on dips anything around the initial support level will be a good place to enter the Bank Nifty.