GOLDEN RULES FOR TRADING

Bank Stocks Outlook for the week – 29.08.2016 to 02.09.2016 (May consolidate next wk, with Apr-Jun GDP eyed)

Bank Stocks Outlook for the week – 29.08.2016 to 02.09.2016
(May consolidate next wk, with Apr-Jun GDP eyed)
www.rupeedesk.in )

Banking stocks are expected to consolidate with a positive bias next week. The Nifty
Bank index is expected to be in the range of 19050-19400 points. The Nifty Bank ended
1.1% lower for the week at 19195.75 points on Friday.
A major trigger for stocks was expected to be US Federal Reserve Chair Janet Yellen's
speech at the Jackson Hole Economic Policy Symposium late Friday. While Yellen did
say that the case for an increase in the federal funds rate had "strengthened in recent
months", she did not give indications on its timing, only reiterating that the central bank
continued to be data dependent.

Domestically, GDP data for Apr-Jun, slated to be released post market hours on
Wednesday, should also lend cues for the second half of next week. In Jan-Mar, India's
GDP grew at a one-and-a-half year high of 7.9%, taking the growth rate for 2015-16
(Apr-Mar) to 7.6%. However, in mid-July, the International Monetary Fund cut its
forecast for India's GDP growth in 2016-17 by 10 basis points to 7.4%.

With the market consolidating near higher band of 8700, underperforming sectors have
also started to witness risk-reward based plays. The PSU banking space is one such,
which has been broadly moving up on short-covering theme. Canara Bank has also
moved up on short covering and multi-year high volume price of Rs. 245 is the key
support level for current upsides.