Bank Stocks Outlook for the week - 05 to May.2014
Bank
stocks are seen trading with a positive bias next week, although gains could be
limited,
with investors favoring pharmaceutical and information technology sector
stocks.
Yesterday,
traders exercised caution ahead of the release of monthly US employment
data,
released after market hours. Data released by US Department of Labor's Bureau
of
Labor
Statistics showed that total non-farm payroll employment rose by 288,000 in
April,
with
the unemployment rate falling to 6.3%, the lowest since September 2008.
National
Stock Exchange's Nifty ended flat at 6694.80, down 1.60 points from close
Wednesday,
and S&P BSE's Sensex closed at 22403.89, down 13.91 points or 0.1%.
Bank
Nifty today settled 13.85 points, or 0.11%, lower than Wednesday's close at
12842.00.
The
current leg of profit booking could continue till 12500/12700 (on Bank Nifty).
We
believe
that post initial profit booking, the Bank Nifty is likely to move towards an
eventual
target of 13500 in the first half of the month.
Stock
market volatility is seen increasing in the coming days as investors prepare
for
results
of Lok Sabha elections, scheduled to be out on May 16. However, exit polls will
be
released after May 12, the last day of the elections. Among banking stocks,
Canara
Bank
and Union Bank of India could be in focus due to their scheduled earnings
declaration.
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