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Last Updated : Aug 17, 2015 03:00 PM IST | Source: CNBC-TV18

Hopeful of PSU banks; Mkt to trade in 8250-8700 range: Pros

With the introduction of Indradhanush — the 7-pronged revial plan for the PSU Banks — market is debating if it will be a gamechanger for the beleagured public sector banking.


With the introduction of Indradhanush — the 7-pronged revial plan for the PSU Banks — market is debating if it will be a gamechanger for the beleagured public sector banking. Most PSU banks saw addition of open interests and it is likely that these would move up from the current levels.

Speaking to CNBC-TV18 on their views on the sector post the development, Hemant Thukral of Aditya Birla Money and Sandip Sabharwal of asksandipsabharwal.com sounded positive. Thukral says he will go long for another 100-150 point rally on the Bank Nifty and Sabharwal says it is time to look at PSU Banks from one-year perspective.

Sabharwal sees private sector honchos coming in either as executive managing directors or non executive chairman as a positive and incrementally everything will add to the valuation of these banks. On account of the reforms, bond yields are likely to go down sharply. "I see the 10 year bonds approaching 7.2 percent by the end of this year, by December - January." He suggests a pecking order of PSU banks; Punjab National Bank (PNB), Union Bank, Bank of Baroda (BOB) followed by State Bank of India (SBI).

Speaking on the market trend, Thukral said the market is back to its broader range of 8,250-8,650-8,700. He advises selling 8,300 Put and 8,700 Call. "It is fetching you Rs 45-50 premium and with only eight sessions left, I don't count Thursday into these strategies, I think it is a good position to make money because I don't see either of the levels 8,250 or 8,750 getting violated before Thursday. So I think this is a good strategy, it can give you good money. For people who are purely traders, I think Nifty may make one more attempt now to test again 8,600-8,650 zone. So if you can take a long position but with a very tight stop loss of 8,480."

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First Published on Aug 17, 2015 09:26 am
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