Madan upbeat on Dena Bank, Allahabad Bank

Ashu Madan, Religare Securities is upbeat on Dena Bank, Allahabad Bank. However, he is slightly negative on Sintex Industries.

Madan told CNBC-TV18, “Sintex Industries has not performed as per the expectations in the past also. It has been in the limelight for most of the time. It was a trader’s delight also, but somehow I think this band of Rs 60-70 it has not been able to break since long time. I do not know what kind of selling pressure comes either on the fundamental side or on the technical side. The worst performance has come in the last couple of months when the midcaps have outperformed the overall market and since then also it has not performed. So clearly the screen shows that there is some inherent negative in the stock. Unless it crosses a particular level I think there is no point trading or investing unless it crosses that band.”
He further added, “We are into select PSU banks like Dena Bank, Allahabad Bank. We are into select midcap cement stocks also. So we feel that 5500 is a strong support level and going ahead even cyclicals could outperform. So I think there is a wide range of products not that there is only a specific sector or a stock which we are recommending to. But overall we feel that there could be a turnaround. Even if there could be lacklustre moment in the front-line stocks we feel that midcaps probably would outperform.”