Banking stocks look weak: Brics Securities

Paul told CNBC-TV18, “Banking stocks are still weak actually along with the largecap IT, banks as a space have actually seen quite a bit of downsides and it seems that still they have some room on the downside left. We may see a short term bounce back, stocks like Yes Bank or an Axis Bank which did sell off quite sharply. We say that these stocks are oversold but a stock gets oversold when it’s a weak one.”

He further added, “Along with the markets - banking space also needs some time. We can have the short term bounces and from a traders point of view these bounces may last for 4-5%. But as a sector I would do well if I stay away from this space right now or probably kick away for sometime a month, month and a half at least.”