Market Outlook for
August 22, 2016
Nifty (8666.90):
The expectation for the Nifty taking out the critical 8740 – 50 range
has been belied on last Friday; on the contrary, in the August series,
the bears came back with renewed vigor to write nearly 1 million unit of
8800-strike calls while the bulls retreated from the 8600-strike puts
by covering 537600 calls buy compensated that by writing 617025 units of
8500-strike puts.
With the hawkish comment by the US FED officials and weakness in global
markets, it appears that it is rather unlikely that the Nifty would be
able to get past 8695 – 8710 range, and there could be supply pressure
even around the 8650-index level. On the downside, once the significant
support zone between 8653 and 8633 gets taken out, expect an attempt to
retest the 8600-mark. Interest rate sensitives may suffer some selling
pressure in early session.
Trade recommendation:
Sell Nifty if it were to stay below the 8665-mark with a stop loss above
8710; add more once the 8633-level gets taken out and bring down the
stop loss to 8667, and your next target would be 8610 – 8590 and 8563.
Bank Nifty (19414.70):
The index suggests indecision and indicates some degree of tiredness
among the bulls—this was quite in line with the technical indications.
The range between 19365 and 19470 would, in any case, have acted as a
strong supply zone that was unlikely to be taken out at one go. Now,
expect some retracement swing happening in the day’s session once the
19255-mark is taken out on high volume selling in bank stocks. It could
once again get into that erstwhile range between 19200 and 18800.
Trade recommendation:
Sell Bank Nifty, once it falls below 19350, with a stop loss above
19500; targets are 19190, 19060 and 18995.
Stock recommendation:
State Bank of India
(258): Buy on declines up to Rs 253.50 with stop loss below Rs 248;
targets Rs 259, Rs 262 and Rs 264.
Cipla
(556.80): Buy with a stop loss below Rs 547.75; targets Rs 564, 571
and Rs 575.
Statutory disclosure: The analyst and his associate has none of the
above. Their respective families, however, do not hold any shares either
jointly or separately in any of the stocks mentioned above.
Read more at: http://www.moneycontrol.com/news/technicals/add-nifty-positions-above-8633-buy-sbi-cipla-rajat-bose_7313761.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/technicals/add-nifty-positions-above-8633-buy-sbi-cipla-rajat-bose_7313761.html?utm_source=ref_article
SBI says will gain $120
bn in assets from takeover of units
In a first move to consolidate India's struggling public sector banks,
SBI's board on Thursday approved share swap ratio for the proposed
takeover of five units that had been run at arms-length, as well as
state-run Bharatiya Mahila Bank, a bank for women set up in 2013.
SBI says will gain $120 bn in assets from takeover of units
State Bank of India
(SBI), the nation's biggest lender by assets, will gain USD120 billion
in assets following its merger with associate banks and Bharatiya
Mahila Bank, the lender said in a statement on Saturday.
In a first move to consolidate India's struggling public sector banks,
SBI's board on Thursday approved share swap ratio for the proposed
takeover of five units that had been run at arms-length, as well as
state-run Bharatiya Mahila Bank, a bank for women set up in 2013.
Policymakers want to recapitalise and consolidate India's state-run
banks so that they can extend fresh credit and help drive an
investment-led recovery in Asia's third-largest economy that is
currently getting a boost from state and private consumption.
India's 27 public sector banks account for 70 percent of its banking
sector assets, as well as the lion's share of the country's USD120
billion in troubled loans.
SBI said the merger would expand its assets by 36 percent to about
USD447 billion.
Read more at: http://www.moneycontrol.com/news/business/sbi-says-will-gain-$120-bnassetstakeoverunits_7311341.html?utm_source=IW_DATA_stockpage
Read more at: http://www.moneycontrol.com/news/business/sbi-says-will-gain-$120-bnassetstakeoverunits_7311341.html?utm_source=IW_DATA_stockpage
SBI says will gain $120
bn in assets from takeover of units
In a first move to consolidate India's struggling public sector banks,
SBI's board on Thursday approved share swap ratio for the proposed
takeover of five units that had been run at arms-length, as well as
state-run Bharatiya Mahila Bank, a bank for women set up in 2013.
SBI says will gain $120 bn in assets from takeover of units
State Bank of India
(SBI), the nation's biggest lender by assets, will gain USD120 billion
in assets following its merger with associate banks and Bharatiya
Mahila Bank, the lender said in a statement on Saturday.
In a first move to consolidate India's struggling public sector banks,
SBI's board on Thursday approved share swap ratio for the proposed
takeover of five units that had been run at arms-length, as well as
state-run Bharatiya Mahila Bank, a bank for women set up in 2013.
Policymakers want to recapitalise and consolidate India's state-run
banks so that they can extend fresh credit and help drive an
investment-led recovery in Asia's third-largest economy that is
currently getting a boost from state and private consumption.
India's 27 public sector banks account for 70 percent of its banking
sector assets, as well as the lion's share of the country's USD120
billion in troubled loans.
SBI said the merger would expand its assets by 36 percent to about
USD447 billion.
Read more at: http://www.moneycontrol.com/news/business/sbi-says-will-gain-$120-bnassetstakeoverunits_7311341.html?utm_source=IW_DATA_stockpage
Read more at: http://www.moneycontrol.com/news/business/sbi-says-will-gain-$120-bnassetstakeoverunits_7311341.html?utm_source=IW_DATA_stockpage
