Bank Stocks Outlook for the week - 09.12.2013 - 13.12.2013 www.rupeedesk.in
Stocks of banks will take cues next week from results of state assembly elections to be announced Sunday. We say stocks of banks are likely to trade with positive bias amid expectation of Bharatiya Janata Party winning most of the four state assembly elections. Exit polls indicate a strong showing by the BJP in Madhya Pradesh, Chhattisgarh, and Rajasthan, and this is largely factored in by the market. Short covering may continue among banking stocks if results come in line with the exit poll estimates. We believe the positive bias in the banking index will continue till it holds above 11300. If BJP wins in Delhi as well, then it would be a major positive, with broader indices scaling lifetime highs. Bank stocks could rise further tracking gains in the broader market. Within banking space, PSU (public sector bank) stocks such as SBI (State Bank of India), UCO Bank, PNB (Punjab National Bank) would be benefit, based on their charts. Big players in private sector banks would also be a part of the rally. The strong reading of November US non-farm payrolls data, released post market hours yesterday, is unlikely to impact the market amid strong cues from the domestic market. Strong US data has renewed concerns over tapering of bond purchases by US Federal Reserve. Bank stocks are likely to trend with a cautious note on Thursday ahead of the release of inflation data based on Consumer Price Index (Combined). Retail inflation data is likely to give cues on Reserve Bank of India's stance on policy rates. RBI will detail its mid-quarter monetary policy review on Dec 18. -- Thanks and Regards, Rupeedesk Research Team Equity-Commodity-Currency-Nifty Options www.rupeedesk.in Contact : 044-24333577 /91-9841986753/91-9094047040 --- You received this message because you are subscribed to the Google Groups "Rupeedesk Profits" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/kences1. For more options, visit https://groups.google.com/groups/opt_out.
