Federal Bank may slip to Rs 385, says Amit Gupta

Federal Bank may slip to Rs 385, says Amit Gupta, Head- Derivatives, ICICI Direct.

Gupta told CNBC-TV18, “If one looks at the whole fall in the banking, it has been majorly into the PSU banking space and the private baking barring Axis Bank, we haven’t seen that kind of crack coming up.”
He further added, “Federal Bank especially in the private banking has seen a lot of long build up rather than the short build up that was seen in PSU banking. Now because of the market jitters, we are seeing that the long players are slowly exiting the stock and it has been following a trendline from November 2011 onwards and we have observed that whenever it hits that trendline, generally the profit booking comes in and that trendline was somewhere around Rs 440-445 levels. From there we have seen that there is continuous closure of open interest and the long liquidation has taken place. I think Rs 385, the stock is likely to hit on the downside and for the traders, it is better if they keep the stop loss above Rs 425.”