Buy SBI; sell Canara Bank: Sukhani

Sudarshan Sukhani, s2analytics.com is of the view that one can buy SBI with a target of Rs 1970 while sell Canara Bank with a downside target of Rs 325.

Sukhani told CNBC-TV18, “State Bank of India (SBI) is a buy because its holding on to the big rally that it gave us on Friday. Mostly in bear market after a big upmove, the stock gives up all the gains that it notched up in next two-three days but SBI hasn’t done that. It has mildly retraced, which is good and healthy but it hasn’t given up the gains. Even in a choppy market there is money on the long side in SBI, so SBI is a buying opportunity. It’s possible that it could go to Rs 1,950-1,970 and that is good enough in this kind of an environment.” He further added, “I am bearish on Canara Bank. The stock reflects the choppy nature of the market. It is not as if all banks are likely to go up, it’s going to be very selective. The bank index could do nothing because some may go up and some may go down. Canara Bank is making new lows and it made an upward sloping flag which gives a target of Rs 325 on the downside. I do not know whether it will come about or not but the trend is clearly down. Today, the weakness in the stock will continue and one should be looking to short it.”