Bank Stocks Outlook for the week - 19 to 23.May.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks
in the financial space, including banking, are seen consolidating next
week
as profits are taken off the table. However, the underlying bias for the
sector
will remain positive. A section of the Street has also not ruled out gains
being
extended either. Driving the stellar rally in equity indices this week, the
Bank
Nifty gained around 2000 points, out of which over 10% gain was seen
yesterday
itself. The complete numbers were not out till the markets closed
yesterday
and many traders booked profits post the first two hours of trading.
So
the bank stocks still carry the potential to go further up from their current
levels,
especially the public sector banks.
Bank
stocks that have seen a huge upward movement in the last two weeks will
see
profit taking. However, the underlining sentiment remains positive for the
sector
and some banks touching 52-week highs or lifetime highs in the next
week
cannot be ruled out. Yesterday, stock indices continued to soar as it
became
clearer that the Bharatiya Janata Party-led National Democratic
Alliance
will form the next government, with the Sensex and Nifty touching an
all-time
high and crossing the 25000 and 7500 mark, respectively, as financial
stocks
led the rally and Bank Nifty hit a lifetime high of 15742.05 points.
Bank
Nifty yesterday opened 14675.60 points up by around 439 points from
the
previous day's close, a gain of around 7.25%. Yesterday, stocks of six major
private
sector banks, including ICICI Bank, Axis Bank, HDFC Bank, IndusInd
Bank,
Kotak Mahindra Bank, and YES Bank, hit lifetime highs and ended up
2.07-5.47%
from the previous day.
Other
gainers that hit 52-high week levels included state-owned banks namely
Bank
of Baroda, State Bank of India, Punjab National Bank, UCO Bank, Indian
Overseas
Bank, Indian Bank, and Oriental Bank of Commerce that ended up
1.41-7.34%
up from Thursday's close. Once the election euphoria is over midweek,
would
await the Jan-Mar earnings of State Bank of India scheduled for
Friday.
The performance of SBI is often seen by the market as representing the
banking
sector as a whole.
Apart
from SBI, private lender Dhanlaxmi Bank will also detail its results for
Jan-Mar
on Friday. Bank Nifty's bias to remain positive, but it will consolidate
in
14800-15300 range for next few days and he would not recommend any
bank
stocks to buy now as most have run up significantly.
