Short Axis Bank, PNB: Manoj Murlidharan

Manoj Murlidharan, AVP-Derivatives, IIFL advice traders to short Axis Bank and PNB.

Murlidharan told CNBC-TV18, “If it is Nifty we have done lot of covered calls buying a protective Put. If it is simply stocks I feel there are couple of stocks which we feel there is good pressure even in today’s trade. We are shorting couple of banks.”
He further added, “Axis Bank would be one. I guess it is somewhere close to Rs 1,158. Keep a stop loss at around Rs 1,181 and we are expecting close to Rs 1,090 on that. PNB would be the second short. We feel somewhere close to Rs 828 is what it is trading for the current month Futures. Rs 851 should be the stop loss and Rs 790. One scrip is McLeod Russell I guess there are good volumes happening and I fear it might be a distribution that we are seeing in the cash market, though we are seeing good short build up in the derivatives side, so we can short that as well somewhere close to Rs 328. Keep a stop loss at around Rs 341 and we are expecting close to Rs 310 on that.”
"For shorting, banking is one sector which I feel there would be pressure coming in, because as I was saying Bank Nifty has a capacity to actually take in an open interest close to 35 odd lakh and it is hardly at 24-23 lakh simply saying that traders are not really entering at this point of time. So I would be shorting all the majors like I said the Axis, PNB. I would rather look into couple of other sectors would be metal. I feel in the event the Nifty corrects and when it is time to buyback banks and metals, because metals really have not participated might be the sector where we might find some fresh money coming in. So I would be looking into couple of scrips like Tata Steel and JSW. This would be our top two picks, though not really at this point of time, but these would be two scrips which I would be watching. f it is Nifty we have done lot of covered calls buying a protective Put. If it is simply stocks I feel there are couple of stocks which we feel there is good pressure even in today’s trade. We are shorting couple of banks.”