"Rajan Rally" May Continue And We Can See 18800-19300 In The Near Term--Power Sector Reform Initiatives May Help
Trading Levels: Positional
| LTP | 17328 | ||||||
| 25 POINTS | FROM SLR | ||||||
| T1 | T2 | T3 | T4 | T5 | SLR | ||
| 17200 | 17319-91 | 17482-570* | 17661-760* | 17851-950 | 18053-160 | <17150 | |
| 17150 | 16979 | 16619-590* | 16270-187* | 16000 | 15793 | >17200 |
Yesterday BNF under performed broader market to some extent due to concern of NIM for rate cut transmissions by banks. On an average so far Banks has transmit nearly 70 bps against 120 bps cut by RBI. Also due to equity infusion in PSBS, there is some possibility of EPS dilution in Banks, unless, supported by incrementally higher income.
By Apr'16, we may see nearly 90% transmission by banks.
Going forward, various proactive reform initiatives by the Govt after "Rajan done his job" may help our market. Power sector reforms and starting of stalled projects will help to generate significant cash flow which in turn, will reduce the huge NPA associated with that sector too.
Globally, after overnight US market rally amid "No Shutdown" and some dovish comments of FOMC members and China's improved PMI data may also help today.
Above 8050, NF may scale 8125-8200-8355 in the near term.
Analytical Charts:
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