Prefer Canara Bank, BOB over private banks: Sukhani

Sukhani told CNBC-TV18, “The PSU midcap banks are likely to outperform, they have been beaten very badly and they are building small basis from which they can give spectacular rallies. So next week if this market action continues on Monday then I would be looking at PSU banks rather than private banks. We have Canara Bank, Bank of Baroda, IOB.”

He further added, “I don’t think that the banks will lead the weakness in the initial parts as of now because what we are expecting is only a correction but if this correction extends beyond 4,900, Nifty goes below that and we again go back into that trading range. A test of 4,700 is possible. In that case, the banks are likely to lead the decline. So I think that as of now, it is the other Nifty heavyweights, which should be weaker but if the decline continues then the banks will again lead.”