Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> will replace <a href="https://www.smartkarma.com/entities/rbl-bank-ltd" target="_blank" data-smartkarma-citation="entities:22856:1" rel="noopener">RBL Bank Ltd (RBK IN)</a> in the <a href="https://www.smartkarma.com/entities/nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">Nifty Bank Index (NSEBANK INDEX)</a> at the close of trading on 30 March.</li>
<li>Index trackers will need to buy over 2 days of ADV on BOB while selling over 2 days of ADV on RBL. There will be capping changes too.</li>
<li>
<a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> trades cheaper than its peers on forward PE and price to book and could outperform over the near-term.</li>
</ul>



Bank Of Baroda (BOB IN) will replace RBL Bank Ltd (RBK IN) in the Nifty Bank Index (NSEBANK INDEX) at the close of trading on 30 March.
Index trackers will need to buy over 2 days of ADV on BOB while selling over 2 days of ADV on RBL. There will be capping changes too.

Bank Of Baroda (BOB IN) trades cheaper than its peers on forward PE and price to book and could outperform over the near-term.


NIFTY Bank Index Rebalance: BOB to Replace RBL Bank

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">NSEBANK INDEX</a> ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.</li>
<li>Based on the index methodology, we see <a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> replacing <a href="https://www.smartkarma.com/entities/rbl-bank-ltd" target="_blank" data-smartkarma-citation="entities:22856:1" rel="noopener">RBL Bank Ltd (RBK IN)</a> in the index.</li>
<li>Passive trackers will need to buy 11 days of delivery volume on <a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> while selling 5 days of delivery volume on <a href="https://www.smartkarma.com/entities/rbl-bank-ltd" target="_blank" data-smartkarma-citation="entities:22856:1" rel="noopener">RBL Bank Ltd (RBK IN)</a>.</li>
</ul>


The review period for the NSEBANK INDEX ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.
Based on the index methodology, we see Bank Of Baroda (BOB IN) replacing RBL Bank Ltd (RBK IN) in the index.
Passive trackers will need to buy 11 days of delivery volume on Bank Of Baroda (BOB IN) while selling 5 days of delivery volume on RBL Bank Ltd (RBK IN).


NIFTY Bank Index Rebalance Preview: BOB Should Replace RBL Bank

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Thomas Schroeder

Chart based progressive global trading strategies

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Technical Analysis

NSE Nifty Bank Index / Technical Analysis

<ul>
<li>Bank underperformance in India typically leads a Nifty top during stretched readings that are building in the Nifty.</li>
<li>Nifty banks are the preferred short (as a pair if you will) over the Nifty currently but will see the Nifty top out and commence a pullback.</li>
<li>Nifty stall zone near October highs with pullback support targets at 17,800 and 17,400 and comes at a time when the global cycle faces late January weaknesss.</li>
</ul>


Bank underperformance in India typically leads a Nifty top during stretched readings that are building in the Nifty.
Nifty banks are the preferred short (as a pair if you will) over the Nifty currently but will see the Nifty top out and commence a pullback.
Nifty stall zone near October highs with pullback support targets at 17,800 and 17,400 and comes at a time when the global cycle faces late January weaknesss.


<ul>
<li>India's Nifty displays deteriorating upside moment at our 18,500 top zone and short area to pressure pivot support at 17,800. Banks showing lead underperformance.</li>
<li>Nifty 18,500 and 18,775 represents our top and overshoot zone with a risk pivot above 18,775. Our downside objective lies at 16,700.</li>
<li>Banks are underperforming but due for a minor cycle bounce that must be factored into a short game plan.</li>
</ul>


India's Nifty displays deteriorating upside moment at our 18,500 top zone and short area to pressure pivot support at 17,800. Banks showing lead underperformance.
Nifty 18,500 and 18,775 represents our top and overshoot zone with a risk pivot above 18,775. Our downside objective lies at 16,700.
Banks are underperforming but due for a minor cycle bounce that must be factored into a short game plan.


ASX buy support has been met but adjusting lower post bounce. Pivotal support rests at 7,250 with rally objectives at 7,540 and 7,750 in Q4. Nifty banks (underperforming) stand out as the short set up into a Nifty frothy zone.Key input into ASX support hinges on the SPX view of a pullback in September.Nifty dip and rally into a new high is expected to see the bank rise run out of steam early and turn/top ahead of the Nifty.

ASX buy support has been met but adjusting lower post bounce. Pivotal support rests at 7,250 with rally objectives at 7,540 and 7,750 in Q4. Nifty banks (underperforming) stand out as the short set up into a Nifty frothy zone.Key input into ASX support hinges on the SPX view of a pullback in September.Nifty dip and rally into a new high is expected to see the bank rise run out of steam early and turn/top ahead of the Nifty. 

India

Nifty Bank Index is a free-float capitalization-weighted index comprised of the most liquid and large capitalized Indian Banking stocks. The index will have 12 stocks from the banking sector, which trade on the National Stock Exchange. The index was developed with a base value of 1000 as of January 1, 2000.

NSE Nifty Bank Index (NSEBANK INDEX EQUITY)

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NSE Nifty Bank Index (NSEBANK INDEX EQUITY)

NIFTY Bank Index Rebalance: BOB to Replace RBL Bank

Bank of Baroda replaces RBL Bank in the NSEBANK at the close on 30 March. Passive trackers will need to buy over 2 days ADV on BOB while selling...

Brian Freitas

NIFTY Bank Index Rebalance Preview: BOB Should Replace RBL Bank

With the review period complete, we see BOB IN replacing RBL IN at the March rebalance. Passive trackers need to buy 11 days of delivery volume on...

Brian Freitas

India Banks Leading a Nifty Top

Bank underperformance in India typically leads a Nifty top during stretched readings that are building in the Nifty where a top is also due with a...

Thomas Schroeder

Nifty Top and Short

India's Nifty displays deteriorating upside moment at our 18,500 top zone and short area to pressure pivot support at 17,800. Banks showing lead...

Thomas Schroeder

ASX Long and Nifty Bank Short

ASX buy support has been met, adjusting lower post bounce. 7,250 support with rally targets at 7,540 and 7,750. Nifty banks (underperforming) stand...

Thomas Schroeder

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)