Keep Rs 430 stoploss in Canara Bank: Thukral

Traders have to keep a stoploss of around Rs 430 in Canara Bank, says Hemant Thukral, Head- Derivatives Research, SBI Capital Securities.

Thukral told CNBC-TV18, "Bank is one area where I have concerns because the pullback rally has to sustain above 9650 to suggest more short covering coming in because first round of short covering is already materialized and what I could clearly see on Friday, stocks like State Bank could not sustain above Rs 2000 even for that matter heavyweights like PNB on the PSU front could not sustain, so first signs of PSUs coming under pressure."
He further added, "In Canara Bank you have seen fresh shorts been accumulated again around that Rs 425-430 zone. That has been a basic resistance for that counter. One can easily go short again with a retest of lows of Rs 400-401 as target. The traders have to keep a stoploss of around Rs 430 because once its bounce back and closes above Rs 430 then I think it will have further short covering up but till now on Friday as I could see fresh shorts again starting to build up. So among the banks PSU Banks will start to weather down first, then followed by private banks. But clearly banks look still under lot of pressure."