NiftyforAll: Weekly Review

Saturday, August 15, 2015

Weekly Review - 17.08.2015

Dear All,

Arun Jaitley's 7 Big Announcements to Revamp PSU Banks

Finance Minister Arun Jaitley on Friday unleashed big bang reforms for the public sector banking system in a bid to revitalize capital-starved and corruption-prone state-run banks.

High levels of non-performing assets in state-run banks have made it hard for the government to revive investment or accelerate growth, analysts say. In a big move to revamp state-run banks, the government is working on a 7-point agenda, said Financial Services Secretary Hasmukh Adhia.

The first element of the government's strategy, Mr Adhia stressed, is appointments. Two bankers from the private sector have been appointed as heads of PSU banks in a much-hyped move. Former Microsoft India chairman and current Infosys board member Ravi Venkatesan will become the chairman of state-run Bank of Baroda.

Bank Board Bureau: The government will set up a Bank Board Bureau through which two dozen state-run banks would be monitored for key performance indicators.

Capitalization: The government will inject a total of Rs 25,000 crore of capital into debt-laden state banks in this fiscal; Rs 20,000 crore would be injected in a month. Over the next four years, the government plans to inject Rs 70,000 crore.

De-stressing: Bad loan ratios at state-run banks have near-doubled in the past four years as weak economic growth hurt companies' ability to repay debt. However, the situation of stressed assets is not so bad, Mr Adhia said.

Empowerment: More flexibility will be given to state-run banks for hiring manpower, the government said.

The government will soon come out with a framework of accountability and announced more reforms as part of its strategy to revamp the public sector banking sector, Mr Adhia said.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Third Time 50 DMA saved the Bulls. Banking Index giving a good support for Nifty to bounce back. It looks like the ball in the hand of Banking Sector. Friday News about Banking Reforms from Govt fueled the rally in Bank Index and Banking Stocks. Such news flow may continue to give strength for all the index too.Lets wait and see.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Clear support from the nackline or base line gave a good rally. But still chart suggest that - Key resistance as mentioned on chart may be a major hurdle for bulls.
If the given resistance and RSI crosses, Expect a good short covering and rally. Else Price may again fall, But this time Bears may come back with full strength.

>>> Nifty 5 Mins Chart - Posted on Friday <<<

>>> Click the chart to see on full screen <<<

Fortunately we wrote on Friday - market may give a relief rally and can move till 8446 and 8480. See what happened and what's Next.

>>> Nifty 5 Mins Chart - Happened and Whats Next <<<

>>> Click the chart to see on full screen <<<

As we updated on Friday Post, Nifty rallied and it was too fast and too high as 1-5 as mentioned on chart. 8560 may resist the bulls.

>>> Bank Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

As mentioned on Chart - Bank Nifty fall looks like a Consolidation for sub wave B. Hence if able to break above 19100 or above - Expect some Good Take Over Rally. Else Bears may hit back once again.
Banking REforms 2015 - and flow of news from Govt. may give more rally if the given levels crosses - as mentioned on chart. Interesting week ahead, as we can expect more bomb shell can be dropped from either bull or bear.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

As per Counts given on chart - Looks like - we are on the 4th sub wave upmove, which may find its resistance @ 18830. If this count was not wrong - expect a fall for the 5th sub wave on the downside. Above 18830 counts becomes invalid and may find its next resistance at the channel above as shown on chart.

>>> Weekly Stock Performance <<<

>>> DISHTV <<<