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Bias seen negative; open interest high in PSUs Bank stocks are seen trading with a negative bias next week as the overall outlook for the sector continues to be bearish. Rollover of positions to the March series in the backdrop of expiry of the February contract which indicates significant build-up of short positions in the sector, particularly among state-owned banks such as Bank of India, Union Bank of India, Canara Bank, State Bank of India, Bank of Baroda and UCO Bank since open interest in them is already at a 52-week high. Similarly, open interest in the March futures of YES Bank is at a 52-week high. But in the backdrop of such high open interest, it is expected that short-covering to kick in.
Bank stocks are also likely to track broader indices, which are seen consolidating on profit sales. Moderation in Oct-Dec gross domestic product growth is also seen weighing on the market. .For the Bank Nifty, 10000-10500 is seen as a strong support while on the upside, resistance is seen at 11000 which is a vital resistance as 100 DMA (day moving average) is placed near 10950.
Bias seen negative; open interest high in PSUs Bank stocks are seen trading with a negative bias next week as the overall outlook for the sector continues to be bearish. Rollover of positions to the March series in the backdrop of expiry of the February contract which indicates significant build-up of short positions in the sector, particularly among state-owned banks such as Bank of India, Union Bank of India, Canara Bank, State Bank of India, Bank of Baroda and UCO Bank since open interest in them is already at a 52-week high. Similarly, open interest in the March futures of YES Bank is at a 52-week high. But in the backdrop of such high open interest, it is expected that short-covering to kick in.
Bank stocks are also likely to track broader indices, which are seen consolidating on profit sales. Moderation in Oct-Dec gross domestic product growth is also seen weighing on the market. .For the Bank Nifty, 10000-10500 is seen as a strong support while on the upside, resistance is seen at 11000 which is a vital resistance as 100 DMA (day moving average) is placed near 10950.
