Buy Dena Bank: Sahil Kapoor

Sahil Kapoor of Edelweiss told CNBC-TV18, "A few of the public sector undertaking (PSU) banks have moved up quite sharply in possibly the strength that we have seen in lot of banks especially Bank of Baroda, Dena Bank and Punjab National Bank. There is a lot of short covering that is going on in these counters. I think there would be some amount of buying as well because the levels from which they have reversed and the open interest plus volume rise that we have seen, I think there are still more legs for PSU banks to move up."

"Out of these stocks Dena Bank looks quite appealing from a price chart perspective, so near levels of Rs 55-57 it becomes a very good buy. Possibly it should head towards Rs 62-64 in the short-term. So there are more legs and one should select stocks based on the volume and open interest data to play short covering and possibly some more long build up in these counters," he said.