Oversold PSU banks may bounce back: Manghnani

Anil Manghnani, Modern Shares & Stock Brokers feels PSU banks may see a little bounce from current levels because of oversold levels.

Manghnani told CNBC-TV18, “Public sector undertaking has been the problem area for the market. I think except with Punjab National Bank (PNB), which had a good rally post its numbers, most of them if not all the PSUs have really collapsed post their numbers. Therefore, right now they are probably at 200-day averages or 50-week moving averages. So, they deserve a little bit of a trading bounce from oversold levels.”
 
“Will they bottom-out any time soon? I think is a little too premature to guess on that. However, like I said maybe a little bounce from here because of the oversold nature of most of these stocks,” Manghnani added.