Dena Bank has resistance at Rs 97: Amit Gupta

Dena Bank has resistance at Rs 97, says Amit Gupta, ICICI Direct.

Gupta told CNBC-TV18, "Bank Nifty is totally a contrast in comparison to Nifty right now. You look at bank Nifty futures, we have seen that 31% of positions have already been built in since the start of this series and on the contrary as I said Nifty 17% - the closure we have seen in the market. So the traders they are betting more on the Bank Nifty right now and whenever the addition has come in bank Nifty it is that the underlying was moving up that means there is more long buildup in Bank Nifty, which has come in and the average price of that long buildup is around Rs 10060."
He further added, "I believe that if the index comes below 10060 you may see some more long liquidation happening in the index that may take it towards 9800 which is a 200 day moving average. Otherwise still it is above 10060 you may see little bit of momentum coming in the midcap space. If you look yesterday we saw the very heavy open interest build up in Dena bank around 20% came. Around Rs 97 is immediate resistance if it is going above that it is possible it may breach Rs 100 this time."
"On the other side Oriental Bank of Commerce is one stock, which is holding one of the highest open interest base of this series and I believe that the shorts are stuck up in the stock because it declined very fast and around Rs 247-245 it formed a good base and from there it started moving up. If Bank Nifty is not breaching 10060 this is one stock if somebody is betting on the short covering for before the monetary policy."