Bank Stocks Outlook for the week – 02 to 06.05.2016
Seen trading with positive bias next week
( www.rupeedesk.in )
The Nifty Bank is seen trading with a
positive bias next week as we expect the index to test the
17000-point level, and find support
at 16400 points. The current price ratio (Bank Nifty/Nifty) closed
above the crucial level of 2.08,
which is a key support area. As long as the ratio stays above these
levels, the outperformance in Bank
Nifty stocks vis-à-vis the Nifty is likely to continue.
The Nifty Bank index ended at
16795.00 points yesterday, registering a rise of 0.55% since Apr 22,
while the Nifty 50 and S&P BSE
Sensex fell 0.63% and 0.90%, respectively, over the same period.
Yesterday, private sector lender
ICICI Bank was in focus, closing 1.3% lower than Thursday's level
and 5.97% lower since Apr 22, after
posting a set of highly disappointing numbers for Jan-Mar. The
bank's Jan-Mar net profit tanked
76.0% to a mere 7.02 bln rupees, missing expectations of 30.6 bln
rupees profit, with the Reserve Bank
of India's asset quality review continuing to take a toll on the
profitability.