Buy South Indian Bank, Karnataka Bank: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "We are recommending South Indian Bank and Karnataka Bank to our clients. If you look at the recent results, South Indian Bank declined towards Rs 30 levels, but it immediately recovered because operationally the results were better. We have seen that both the banks are near a very crucial breakout zone because last nine years' breakout for Karnataka Bank is near Rs 140. Last three year breakout for South Indian Bank is near Rs 30. So now they are very close to those levels. So the risk reward I think is also very much favourable."

"If you look at the open interest position, since September, in South Indian Bank the open interest got doubled. So that means the long positions are now aggressively formed which is where the momentum can now come in these stocks."

"South Indian Bank now can go to Rs 35. In the current series itself in Karnataka Bank, the open interest increased by 30 percent and I think it can move towards Rs 175-178. So from the midcap banking we are recommending these two stocks just on this belief the results were pretty okay and can be utilized as a buying opportunity in both of these stocks," he said.