Bank Stocks Outlook for the week – 26 to 30.10.2015
Trade
seen positive; earnings, Fed meet eyed
( www.rupeedesk.in )
Bank
stocks are likely to trade with a positive bias next week, with resistance for
the
Bank
Nifty seen near 18200 points. Yesterday, the Bank Nifty ended up 1.3% at
17934.05
points. Bank Nifty/Nifty price ratio is trying to form the base above the
threeyear
breakout
levels of 2.11. This price ratio is still at 2.16 and could move higher as and
when
Bank Nifty starts trading above crucial 18000 levels. Given the earnings-heavy
week
and expiry of the October derivatives series, expect some volatility in the
domestic
equities.
Eyeing State Bank of Mysore, Axis Bank, Syndicate Bank, ICICI Bank,
Karnataka
Bank and Kotak Mahindra Bank, all of whom will report Jul-Sep earnings next
week.
HDFC
Bank and Axis Bank have performed among the private banking stocks. IndusInd
bank
is also likely to perform if Bank Nifty holds above 18000 levels. Apart from
quarterly
results, the US Federal Open Market Committee's Oct 27-28 meet is also being
eyed
for further cues on the central bank's rate hike decision. While the Fed is not
expected
to finally raise interest rates next week, the language in its statement will
be
watched
closely to gauge the central bank's assessment of the US as well as global
economy.