Axis Bank has support at Rs 930-940: Amit Gupta

Axis Bank has support at Rs 930-940, says Amit Gupta, Head- Derivatives, ICICI Direct.

Gupta told CNBC-TV18, "The private banking was weak before but we saw some sort of a strength coming from State Bank of India which was given up actually in the last session. I think banks are really jittery. But if we see some sort of short covering in the markets in the broader indices then I think the banks also have to participate because they have very high weightage in the Nifty."
He further added, "Having said this if you look at State Bank of India I think Rs 1,800 was the major support. Now it has taken out this support yesterday. So if it has to move up from here I think immediately it has to close above Rs 1,800 again. If this diversion from Rs 1,800 increases then I think whatever put writing we have seen so far at this strikes then ultimately you will start think the closure is there and finally the stock may come towards Rs 1,700 or Rs 1,720 levels. So I think the close above Rs 1,800 immediately should come."
"If you look at private banking what we have seen that where the market starts topping out at the higher levels the private banking stocks starts giving up very fast. Now that we have already seen in Axis Bank Rs 1,140, it came down till Rs 1,040 and now Rs 940 it is trading. In very few sessions it has come to this level. I think Rs 930-940 for Axis Bank is a very good support and the kind of short positions we have seen getting rolled to this series and finally added fresh, I think there maybe a room for some short covering around Rs 930-940 in Axis Bank towards Rs 980-990 again or possibly above Rs 1,000 levels. I think the broad range for Axis Bank could be Rs 940 till Rs 1,030-1,040 at least in the coming sessions."
"If you look at Kotak Mahindra Bank and HDFC Bank I think Rs 450 remains a very critical level for both of them and if they start moving below Rs 450 again because they have already given a closing below Rs 450 in the last session. If they start moving below this level, I think the problems will pile up for both the stocks because they have seen long accumulation actually before also and the long liquidation will drag both that stocks down."
"Bank Nifty I think 9,000 is critical for me and the index has to move beyond 9,000 immediately otherwise the movements maybe on the downward side toward 8,600 or 8,700. So I will take 9,000 as a fulcrum right now for Bank Nifty and if I see a closing immediately above 9,000 that will be a negation actually what happened yesterday."