Bank stocks Outlook for the week – 30.06.2014 to 04.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
The bias for bank stocks next
week remains positive as cyclical sectors are expected to
attract buying in the run-up to
the Union Budget for 2014-15 (Apr-Mar) that will be
presented on Jul 10.Rollover of
positions in banks from the June derivatives series, which
expired on Thursday, to the July
series also indicates a positive outlook. Several stocks,
particularly mid-cap ones, have
seen build-up of long positions in the July futures
contract.
Mid-cap names like IDBI Bank,
Federal Bank, and Union Bank of India have shown high
rollovers with rise in open
interest and rise in prices indicating significant long rollovers.
Traders should trade in them with
positive bias but should be following strict stop loss
because in case of some
correction in market they may come under pressure.
Next week, banks such as Central
Bank of India, ICICI Bank, IDBI Bank, Punjab
National Bank, UCO Bank, and
State Bank of India will be in focus, as investors will eye
the outcome of their annual
general meetings. Market participants expect mid-cap stocks
to rise more than the large-cap
ones such as Axis Bank, State Bank of India, and ICICI
Bank.
Yesterday the benchmark indices
ended with marginal gains after moving in a thin range
through the day. National Stock
Exchange's 50-share Nifty closed at 7508.80, up 0.2% from Thursday's close and
the S&P BSE Sensex settled at 25099.92, up 0.1%.
