Sell Canara Bank Futures around Rs 442: VK Sharma

Sell Canara Bank Futures at around Rs 442, says VK Sharma, HDFC Securities.

Sharma told CNBC-TV18, "I think the banking sector per se is lackluster. Canara Bank and Vijaya Bank have given indications that they have headed on the downside. So in terms of Canara Bank although options are not liquid here, so we will have to look at only shorting the stock Futures. So we did see positions being built on the short side and the stock also broke, clearly visibly on the downside. So selling the stock Futures at around Rs 442 with a stop loss of Rs 446 and hoping to cover it at around Rs 434 is my strategy in Canara Bank."
He further added, "In Vijaya Bank, the positions were added on the shorter side with slightly more vigor, almost 9% were added and selling this stock Futures at around Rs 56 with a very small stop loss of Rs 57 and hoping to gain I think Rs 3 on this. So the ratio will work out 1:3 but you will have to work with very small stop losses in Vijaya Bank."