Indian Overseas Bank may test Rs 32.70, Union Bank Rs 195: Rajat Bose

Rajat Bose of rajatkbose.com told CNBC-TV18, "I would say that Avenue Supermarts (D-Mart) looks pretty good. In fact there is a possibility that it might scale up to new highs. I like the Rs 806.90 level which was the high on April 13, this time you can actually see D-Mart scaling up to that or even going beyond that. So, that is one stock that you can trade. If you trade at Rs 785, your stop loss should be below Rs 775 and expect Rs 809 on the upside."

"I am looking at all PSU banks. My favourite among the three PSU banks I have chosen is the one that I personally hold, Indian Overseas Bank (IOB). The government has the largest shareholding in this and if government has to do something then this would be one of the biggest beneficiaries I suppose. The target is to about Rs 32.50 because Rs 32.70 is a strong resistance. Stop loss is below Rs 29.70 and Rs 32.50 is your target there," he said.

"In Union Bank, stop loss is below Rs 183 and target is Rs 192-195. In Oriental Bank, I would put a stop loss below Rs 179.50, Rs 185-186 would be your target."