Accumulate Kotak Bank at Rs 550-490: Manghnani

Anil Manghnani of Modern Shares & Stock Brokers is of the opinion that one can accumulate Kotak Mahindra Bank between Rs 550-490.

Manghnani told CNBC-TV18, "If any fall maybe because there is only a 20% limit is to what FIIs can buy in PSU banks that’s why there is not so damage in the fact that they are trying to exit pretty much everything. But still I would say any rally in this market will be led by the PSU banks but since they haven’t corrected maybe the upside seems to be limited at least from the trading point of view for this month. We have gone with Kotak again; with the market making new lows. Probably in the banking sector; the private banking ICICI Bank is the only worrying; one that continues to make new lows whereas the other three whether HDFC Bank, Axis Bank and Kotak are not cracking as fast as ICICI Bank. So probably they are still safer banks to trade in. I think Rs 550-490 is a broad range to accumulate Kotak in this fall with a target of Rs 618 and in a bigger move if there is a sharp bounce to about Rs 708 with a stoploss below Rs 485."