Prefer banking stocks, says Gautam Shah, Sr VP & Technical Analyst, JM Financial.
Shah told CNBC-TV18, "The Bank Nifty has been in a range just like the Nifty but the bias has been a little more positive for this particular index and over the last few weeks it’s taken good support around 10,000 level, which we had presented in our earlier interaction as well. The way the Bank Nifty keeps bouncing back from that level of 10,000 on account of some of these largecap banking stocks gives me the confidence that eventually the Bank Nifty will also breakout on the upside."
He further added, "I think there are specific stocks that are doing exceedingly well, if you look at a stock like HDFC Bank which hit a lifetime high yesterday, Kotak Mahindra Bank has been a star performer, IndusInd Bank has been a very steady performer over the last many months and some of the PSU banks like State Bank of India are starting to look like they could breakout in the next few days. So I would be positive on the Bank Nifty and I believe the figure is already there, we would get a confirmation on a close above 10,650 and once that happen the Bank Nifty can move to a level of 11,200 to 11,500. So banking would be one of my best picks in the market if at all you have to ride the Nifty move."