RBI allows Indian banks to reverse provisions on sale of some NPA's. Also, the India Nifty and Bank Nifty will bounce back from these technically oversold levels: Fast(3) K, Slow(3,3,5) K, MACD(close,12,26), RSI(close,14), Percentage Williams(10), and DMI(14) - (all at oversold levels) to ~9100 and ~20500 respectively, within a week's time. Source: Yearly Chart(s) fom Tradecision(tm). These technical indicators / oscillators are all statistically significant with an R^2 above 93 percent in a nonlinear time based (price vs. osc. value, t) regression model for a historical period of 1 year based upon the daily closing price of the indices taken separately and individually for each indicator.
From Bloomberg TV today night: Indian PSB's (public sector banks) to issue DVR's (shares) if govt. stake is reduced to below 50% (i.e. through imminent divestment) - process of which is already underway.
Bullish crossover above 0 seen in the MACD, FastK moving bullishly upwards from oversold levels of 20, and RSI moving upwards from 55. These three indicators are the most significant statistically in an MLR time based model for the past year's historical data. Expect ~20400 on the spot Bank Nifty in 2 days or so.
The ECB QE liquidity will start flowing into the euro and asian mkts. on monday where interest rates are decreasing. Also, the FED will not hike sooner than expected because wage growth is stagnant and there is only low quality of job growth. They do not want to make the mistake of the 1930's and tighten sooner than expected, as reported by an analyst on cnbc u.s.a. Apparently this view is supported by Ben Bernanke as well. Moreover all the 31 u.s banks passed the stress test. This bodes well for the Indian Bank index.