Go long in Canara Bank with a target of Rs 451: Bhamre

Siddharth Bhamre of Angel Broking is of the view that one can go long in Canara Bank with a target of Rs 451.

Bhamre told CNBC-TV18, "We have been observing that there has been good amount of shorts, which are still standing in Bank Nifty and that’s the reason that after Nifty breaching that 5,150-5,200 resistance zone post expiry on Friday, Bank Nifty has been outperforming."
He further added, "We have seen days when Nifty has been flat and Bank Nifty up by 0.75-0.8% sometimes 1%. We believe this outperformance may continue for some more time. At the same time when Bank Nifty was rallying due to some formation of long positions and short covering midcap banks have seen huge formation of long positions in last fortnight or so since the beginning of this expiry. Last two days correction has been because of long unwinding. So this is basics of derivatives that whenever a stock corrects because of long unwinding and goes up because of formation of long position that’s buying on dips, so midcap banks have corrected.
"We like number of banks like Allahabad Bank, Bank of India, Indian Overseas Bank, Union Bank of India, Canara Bank, Dena Bank but looking at the cash based volumes and the kind of unwinding we have seen in last two trading sessions Canara Bank is a good buy. I think one can create long positions at current levels for the target at Rs 451 and stop loss at Rs 414."