Exit banking stocks on rise: S Agarwal

Sanjeev Agarwal of Globe Capital Market is of the view that one should exit banking stocks on rise and buy back at lower level.

Agarwal told CNBC-TV18, "The highs that these banking stocks are making are nothing more than a dead cat bounce. They have been pounded mercilessly for the last 3-4 months so there is some value emerging for the fundamental front. So there are some bargain hunters and along with that some amount of short covering is putting some impetus in these stocks. But I feel that these stocks will have a huge resistance on the upside and at the first resistance, they are going to be a lot of supply which is hard to digest in these market conditions. So, at the upper side, it’s giving you a short term opportunity to exit at least temporarily and for you to buy it back at lower levels. The sector has not bottomed out the kind of chart patterns they have made and they have been a very sharp fall and these kind of sharp pick ups are hard to sustain and they are very likely look like a sharp bear market rally can be vicious but ultimately they fail."