Opportunity in banking says G Shah

Gautam Shah of JM Financial is of the view that there is opportunity in banking space from long term perspective.

Shah told CNBC-TV18, "From a short-term perspective I think the entire segment will be an avoid because you are not seeing clean moves, and as you just mentioned some of the stocks move up for one day and the next day, they are down back to support levels. So because there are no clean moves and because based on relative strength studies you have some of the other sectors, which are doing much better and the good example is oil and gas."

He further added, "So from a trading perspective banking should be avoided but from a longer-term perspective, I think this is an opportunity because some of these stocks have lost 50-60% over the last couple of months and as I just said once the inflation fears are out of the system, which has to happen eventually it’s a matter of few weeks or may be a few days. I think once that happens you will see some of these banking stocks recovering quite fast. So from a one-year perspective you should be buying into these banks but from a trading perspective avoid and get into some of the other sectors."