Axis Bank has target of Rs 1430: Thukral

Axis Bank has target of Rs 1430, says Hemant Thukral of SBI Capital Securities.

Thukral told CNBC-TV18, "Axis Bank and HDFC Bank have showing an above average rolls, which is a rare sign of what we are seeing on the stock futures front right now. Both the leading banks are showing above average rolls but the cost of carry is showing a huge diverging trend." He further added, "HDFC Bank cost of carry is declining month-on-month basis clearly telling that more of shorts have been rolled to the next series, whereas Axis Banks' cost of carry is showing more promising that means more long positions or more buying positions being rolled to the next series, so clearly telling that the mood in both these stocks is opposite." "What we feel is that in February series, HDFC Bank will underperform Axis Bank going on from hereon. So the pair trade is very simple that we want people to go short in HDFC Bank and go long on Axis Bank. In Axis Bank we have a target of Rs 1,430 on the upside whereas HDFC Bank we have a target on the downside around Rs 1,975. So this would give huge returns to the traders going forward in February series."