Bank
Stocks Outlook for the week – 17 to 21.11.2014
( www.rupeedesk.in )
Bank stocks are expected
to rise next week, with long positions that have been
formed likely to keep the
momentum intact. The Bank Nifty has closed near one
of its highest call base
17500. The ability of the index to sustain above 17500 is
likely to trigger the
next round of the up move on the back of short covering in
short call options. On
the lower side, highest put base is the 17000 put strikes.
Any intermediate declines
towards this level remain a buying opportunity for
upside targets of
17700/18000.
Yesterday, benchmark
indices ended at record closing highs, with the Nifty
ending at 8389.90, up
32.05 points or 0.4% from close Thursday, and S&P BSE
Sensex ending at
28046.66, up 106.02 points, or 0.4%. Bank Nifty ended at
17576.80, up 1.32% from
close on Nov 7. Specifically, HDFC Bank is expected to
surge next week on
reports that its proposal to raise foreign shareholding in the
bank to 74% was cleared
by the Foreign Investment Promotion Board, after
including its promoter
HDFC's stake as foreign holding.
State Bank of India may
rise too after its stocks ended up 2.5% yesterday at
2,787.85 rupees after its
Jul-Sep results showed an improvement in asset quality.
