Sukhani upbeat on banking sector

Sudarshan Sukhani of s2analytics.com is of the view that one should not exit banking stock at current level.

Sukhani told CNBC-TV18, “In banking the profit taking phase has not come yet. Generally short term traders should take profits when they have big gains in their favour. That is a broad rule. These big gains are coming because of the enormous gaps that are available in the morning so as a principle you can take profits wherever you want but specifically for banking stocks I don’t see any reasons to get out now.” He further added, “Bank of Baroda even State Bank of India which has come out of a trading range in style on Friday. Intraday gaps were too large so they have to be filled or corrected but that does not suggest short term trend. In fact the private sector banks have outperformed and perhaps they will consolidate. Once the consolidation is over in ICICI Bank, HDFC and Axis further buying is possible. I am upbeat on the banking sector not upbeat on any other part.”