Book partial profits in banking stocks: Parag Doctor

Parag Doctor, Keynote Capital advice traders to book partial profits in banking stocks and should remain cautious in IT & metal space.

Doctor told CNBC-TV18, “Banking is going more or less in line with the Nifty. The technical levels if they breach on the Nifty I would also recommend to reduce longs in the banking stocks. In the Bank Nifty 11200-11100 is where the critical support is. Below that only would there be any kind of downtrend which is sustainable. So the same kind of advice applies to the banking stocks. Take profits out, at least partially and wait for clarity to emerge on the trends as we play out the results season ahead also.”
He further added, “Within the Nifty I would be cautious in the IT space and the metals space as of now. IT because results are coming up and with appreciating currency there is no visibility as of now and people are weary of these rude surprises which come out of the Infosys results in the last so many quarters. So IT is one thing where you should be coming out. Metals are again not really performing up to the market, not participated to a great extent. Steel stocks have not been doing well like Tata Steel, JSPL. Sterlite, Sesa Group stocks have also underperformed. The stocks which have not participated in this rally would be the first to crumble if the markets were to have some kind of a corrective downtrend.” Disclosure: I do not hold any positions, but we may have recommended some of these stocks to our clients.