See 7-8% upside in Allahabad Bank, Canara Bank: Thukral

One can see 7-8% upside in Allahabad Bank, Canara Bank and Bank of India, says Hemant Thukral, National Head-Derivative Desk, Aditya Birla Money.

Thukral told CNBC-TV18, "It is now getting back buying into public sector undertaking (PSU) banks. Yesterday we have seen Punjab National Bank (PNB) building up fresh open interest. It is more of a catch up rally with the PSU side. All the midcap PSUs have done very well right from the start of December series. But I still feel that you should give preference to private banks."
He further added, "ICICI Bank and HDFC Bank both look very strong currently also. They have not even given a correction of 1 percent to 2 percent also on the downside till now. So they look much strong but among the PSUs I still feel midcap PSUs like Allahabad Bank, Canara Bank, Bank of India, they have still another 7-8 percent easily move on the upside. So if you want a trading bet then you should look for midcap PSU banks."
"Yesterday, we have seen a good open interest being built up in both Sterlite and Sesa Goa. They have seen the maximum open interest built up on the long side whereas Tata Steel has seen more of short covering coming in. So if you want to go with the data front then I think Sterlite and Sesa Goa should be kept on the on the long front."