Stay with short bias; avoid banks till expiry: Experts

As the Sensex fell 387.91 points to close at 19,674.33 and the Nifty closed at 5967.05, down 127.45 points, Sudarshan Sukhani of s2analytics.com continues to maintain a negative bias on the markets. He advises investors to continue with the short bias. "I don't see this level as the end of this decline." 

"The market has broken the 6020-6030 support and the next support could be approximately at 5900. Short-term traders should liquidate a part of their position and book profit."  For investors who do not hold short positions, Sukhani suggests positional trades on the short side and buy 6,000-puts for the June series. State Bank of India (SBI) is down 8 percent after the bank declared quarterly earnings today. SP Tulsian of sptulsian.com expresses disappointment with the earnings. "What is positive is the marginal improvement in the net interest margins (NIMs) and improvement in the asset quality."
Tulsian continues to maintain his negative outlook on the Bank Nifty till next Thursday, the end of the May series. "I do not think any long positions will created. All the current long positions will be liquidated and this may keep all the counters under pressure. Wait for the expiry of the May series. Long positions initiated a day before the expiry will offer considerable returns. But stay away from banking stocks at least for the next one week or so."
Tulsian views the 10-percent fall in Ranbaxy Laboratories as an overreaction. "There have been concerns about the company and the personal liability against the promoters is quite high ever when the company is independent and existing. This indicates improper due diligence on the part of Daiichi. It maybe now that the company is making losses, Daiichi is trying to recoup its losses by initiating legal proceeding against the Singh brothers. The level of Rs 375-380 could make an ideal entry point." BHEL's operating metrics have considerably deteriorated in the medium-term and there has been a complete loss of faith in this particular stock. The stock is still down 4 percent. 
Tulsian does not hold a negative view on the stock as the company has posted a PAT of Rs 3,237 crore against the provisional estimates of Rs 3,108 crore announced on April 8. "It is a debt-free PSU and is a market leader in the capital-goods segment available. They have a good order book in the place. The bottom-line for Q4 against the provisional earnings were higher and this takes the EPS for Q4 to Rs 13 plus. So, overall I am positive on the earnings."
Tulsian finds Reliance Power's reschedulement of loans worth Rs 1,090 crore strange and frustrating. "Reliance Power has announced that it has commenced its 660 MW plant at Sasan and said that it was ahead of schedule. There is no reason for reschedulement if power-generation is ahead of schedule, there are no problems with imported coal and the margins are in place. Public-sector banks have to be a little rigid while accepting requests of for restructuring."