Bank Stocks Outlook for the week – 24 to 28.07.2017
Bank Stocks Outlook for the week – 24 to 28.07.2017
( www.rupeedesk.in )
Bank stocks are expected to trend mostly higher, with stock-specific triggers likely for top private
banks which will report Apr-Jun earnings in the coming week. Some volatility ahead of July
derivative series on Thursday is also expected. As we are approaching the expiry, volatility may increase. However, the overall set-up is suggesting that the range-bound scenario may be seen in the index on upside. This will be favourable for options writers. Looking at the options set-up we feel the index is well placed to test higher band of 24500 levels. However, the key drivers next week will be the announcement of earnings by large private banks such as HDFC Bank, Axis Bank and ICICI Bank. Other banks that will report earnings on Saturday and in the coming week are Jammu & Kashmir Bank, Vijaya Bank, Lakshmi Vilas Bank, YES Bank, Federal Bank and IDFC Bank.
These earnings are likely to give stock-specific triggers for banks, with larger private banks
expected to continue improvement on the asset quality front, even as smaller private and public
sector banks continue to face the brunt of higher provisions. Among private banks, although HDFC
Bank is stable and continues to deliver steady returns, at current levels there is more value in
buying ICICI Bank shares. With similar mixed trend for bank earnings so far, expects refrained from any sector wide view due to the prevailing uncertainty over higher provisioning for 12 loan accounts that have been referred to National Company Law Tribunal.
Source : Cogencis Information Services Ltd.
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Bank Stocks Outlook for the week – 24 to 28.07.2017
( www.rupeedesk.in )
Bank stocks are expected to trend mostly higher, with stock-specific triggers likely for top private
banks which will report Apr-Jun earnings in the coming week. Some volatility ahead of July
derivative series on Thursday is also expected. As we are approaching the expiry, volatility may increase. However, the overall set-up is suggesting that the range-bound scenario may be seen in the index on upside. This will be favourable for options writers. Looking at the options set-up we feel the index is well placed to test higher band of 24500 levels. However, the key drivers next week will be the announcement of earnings by large private banks such as HDFC Bank, Axis Bank and ICICI Bank. Other banks that will report earnings on Saturday and in the coming week are Jammu & Kashmir Bank, Vijaya Bank, Lakshmi Vilas Bank, YES Bank, Federal Bank and IDFC Bank.
These earnings are likely to give stock-specific triggers for banks, with larger private banks
expected to continue improvement on the asset quality front, even as smaller private and public
sector banks continue to face the brunt of higher provisions. Among private banks, although HDFC
Bank is stable and continues to deliver steady returns, at current levels there is more value in
buying ICICI Bank shares. With similar mixed trend for bank earnings so far, expects refrained from any sector wide view due to the prevailing uncertainty over higher provisioning for 12 loan accounts that have been referred to National Company Law Tribunal.
Source : Cogencis Information Services Ltd.
