Federal Bank may come down to Rs 390: Amit Gupta

Federal Bank may come down to Rs 390, says Amit Gupta, Head-Derivatives, ICICI Direct.

Gupta told CNBC-TV18, "I think 10050-10470 this is a broad range in which Bank Nifty will move now. If you look at the lower base where the Put Options are still quite active, it is 10000 and 10100 only. So hence I think 10050 will be the immediate support. On the higher side where we had the immediate gap down that were around 10470, so those gap downs we are seeing in Nifty also not getting filled so far. So I think in Bank Nifty also that will be the immediate resistance."
He further added, "If you look at the other stocks I think Federal Bank is one in the midcap space, which may see some long liquidation because the large caps also are not finding it easy to hold the higher levels. In Federal Bank if you look at the last one or two months’ movement it has really little bit outperformed the market, but what is happening now in the range of Rs 420-440 we are seeing the longs are little bit exiting from the stocks and below Rs 420 the level which was not taken out even in the month of June and till now it was taken out actually in the last two sessions."
"So I think it’s a breakdown in Federal Bank and it may go down till Rs 390. You can utilize the upsides towards Rs 410-413 to go short in the stock and keep a stop loss at Rs 423 that is a little bit higher than the breakdown levels."