Canara Bank may dip to Rs 390-395: Amit Gupta

Canara Bank may dip to Rs 390-395, says Amit Gupta, ICICI Direct.

Gupta told CNBC-TV18, "PSU banks may see some more long liquidation because whether you look at Bank Nifty or Nifty and the other PSU banks because exactly what happened in bank Nifty, the people they were forming the long positions and we are continuously seeing those open interests are getting closed, the premium is getting shrunk."
He further added, "Now that clearly indicates that the longs are getting exited from the market or the market has forcefully exiting those long positions. Now the same is happening with the PSU banking. We had taken the data from October 16 till now and we were seeing that how much open interest is still left in the PSU banking. We had three-four stocks out of which Canara Bank has more than 20 percent of open interest still left."
"From September onwards rather, we saw that on 24 it made a high of around Rs 455, since then it had made almost couple of attempts to breach that level and every time we are seeing that the long liquidation is bringing the stock further down. This time around it has started coming down the open interest which got doubled from November 1 till the mid of this month, now it is seeing the closure of positions. So I believe that Rs 390-395 around possibly the stock may come upto. So utilize the upsides to go short in the stock."