OBC, IndusInd Bank can fall 4-5% next week: Tulsian

SP Tulsian of sptulsian.com feels Oriental Bank of Commerce (OBC) and IndusInd Bank can correct by about 4-5 percent in the next week.

Tulsian told CNBC-TV18, “I have chosen two stocks to go short from the banking sector. One is the OBC amongst the public sector undertakings (PSU) banks. I don’t think that results will really be cheerful and the kind of run up which we have seen in the stock price in these last couple of weeks. In fact two stocks from the PSU banking space have really risen beyond the expectation or beyond the relative performance with other banks – one is Canara Bank and second is OBC. So, in my view OBC seems to be a good shorting candidate at the current level for a gain of about 4-5 percent in next one week or so.” Also Read - Here's what to expect from HUL Q4 earnings
 
He further said, “The second stock that I have chosen from the short side is IndusInd Bank. The bank has posted good numbers but that has stretched the valuations on a very expensive parameters with a price to book of 3.3 and price-earnings (PE) multiple of 21 times. And that is comparable or way ahead with the ICICI Bank and to a great extent comparable with HDFC Bank which I don’t think deserves that kind of valuation. So, may be that stock can also correct by about 4-5 percent in the next week to 10 days.”