Bank Stocks
Outlook for the week – 04 to 08.08.2014
Investors in bank stocks will
keenly await cues from the Reserve Bank of India's bimonthly
policy due Tuesday. They will
also look forward to Apr-Jun earnings of some
banks next week. Even though the
overall sentiment is positive towards the banking
sector, any further fall in the
rupee may negatively impact the market at large next week.
The rupee breached the
61-rupees-a-dollar mark and hit over a four-month low today.
Even though most experts did not
expect any change in key rates by the central bank, the
market will be watching the
central bank's comments on monsoon and inflation closely.
"Of course, we don't expect
any cut or any hike (in key rates), but we expect some
statement on indication of
softening of interest rates," a Bank of India official said.
The Bank Nifty futures will find
support at 15000 and then at 14750 levels while the
upside should be capped below
15960 levels.
Moreover, there will be
stock-specific action tracking the earnings results of the banks
that will present their Apr-Jun
earnings numbers next week. State Bank of India, Oriental
Bank of Commerce, City Union
Bank, IDBI Bank, Corporation Bank, among others, will
detail their Apr-Jun earnings
next week.