Sell Vijaya Bank, Canara Bank: Sudarshan Sukhani

Sell Vijaya Bank and Canara Bank, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Vijaya Bank is one of the weaker public sector undertaking (PSU) bank, in fact, it is very difficult to say which one of them is the weakest, all of them appear to be collapsing and they are doing that at periodic intervals; falling, stabilizing and then breaking support and falling again.”
He further added, “Vijaya Bank at Rs 50 suggests that it’s breaking other significant support levels. Since it has been accompanied by most of its other peers, I would assume that the trend is very clearly down, it’s a short sell, and something is going on in PSU banks which we do not understand on the fundamentals at least. But I know that the charts are telling us lower levels are still coming. So it remains a short sell.”
“I have got sells on many PSU banks. Canara Bank has been a disaster. It has come down to Rs 338 from a top of Rs 850 and its not stopping. It makes new lows. The stocks that make new lows need to be sold especially when they are in a weak sector.”
“I am a little surprised that the sector is not bottoming out but that’s the way the charts behave and the markets behave. It continues to be a sell. There is a second suggestion that one should not try and time this and try to buy them, it’s too early. They are still falling and probably lower levels are coming.” Disclosure: I have no holdings in the above stocks.