Dec 01, 2016 11:43 AM IST | Source: CNBC-TV18

Pick Canara Bank, Ceat: Hemant Thukral

Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money is of the view that one can pick Canara Bank and Ceat.

Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money told CNBC-TV18, "We feel that banking rally will continue today and two prior reasons; we are still seeing that short positions are still open. Especially, I am watching for ICICI Bank and Axis Bank carefully, both these banks have huge short positions opened and we saw ICICI Bank reacting yesterday. I think ICICI Bank should move at least towards Rs 270-275 - that means Bank Nifty should move towards 18,900-18,950 zone in next one or two trading sessions."

"We like Canara Bank particularly for two reasons. It saw good open interest on the long side where we are seeing short covering on the banking; 6 percent open interest added up, the stock finally moved above Rs 308-310 band which was acting as a stiff resistance for it, so now it will act as a support. So, we feel Rs 310-312 should be kept as a stop loss and next target that we are looking is around next resistance band of that stock between Rs 330 to Rs 332. So, it is Canara Bank particularly, we like as a trading pick for next one to two trading sessions," he said.

"We are also recommending a tyre stock, for the last two days a lot of accumulation happening on the tyre stocks and Ceat is the stock we like especially, 10 percent open interest, fresh added, premium has increased on the Future front. So, long positions and speculators have been building up. The stock has managed to move above Rs 1,250-1,255 band, so now Rs 1,240 should act as a strong support for it. That should be kept as a stop loss and we feel now next target should be around Rs 1,340-1,350 range."

"So tyre stocks are looking good especially Ceat, we would like to pick for long side trading. This call will be for one-two trading sessions," he added.
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