Atul Badkar, VP - Institutional Equities - Derivatives Desk at Edelweiss Securities Limited told CNBC-TV18, "Irrespective of the market showing strength on Thursday, the banking index and across banks, we didn't see too much movement on the upside. We had metals rallying, but banks underperformed yesterday."
He further added, "If the market were to hold 5,400 or even stay around that level and slowly rally towards 5,450, we will see some sort of bounce back in banks particularly the higher beta ones, maybe State Bank of India, ICICI Bank and Yes Bank."
"Yes Bank has been extremely volatile over the last few trading sessions, it has been down 15-20 percent on particular days and it again rallied back. However, there are lots of shorts in this bank and any sort of short covering can quickly take the stock to Rs 260 mark. So, from a trading perspective immediately next four-five trading sessions, one can take a long in Yes Bank, but one got to keep stop losses in place maybe 3-4 percent lower and one got to cut longs and that goes even for Axis Bank, ICICI Bank and State Bank of India," Badkar said.
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