Gautam Shah bullish on private banking space

Gautam Shah of JM Financial told CNBC-TV18, "You have to be extremely nimble-footed in the banking index. There are times wherein this sector can give you 5-10 percent very quickly on the upside and on the other hand it can just come off very quickly like what is happening today. So I think this is something that will continue till the index really breaks out on the upside."

He further added, "In the Bank Nifty itself our view has been that the private banking side will continue to do well over the next 6-12 months, so we have a buy and hold recommendation for most of these private banking stocks. I think at the lower end of the range closer to the 6000 mark on the Nifty most of these private banking names like Kotak Mahindra Bank, HDFC Bank or ICICI Bank, the risk reward would be favourable in terms of going long once again. So we continue to be bullish on the private banking side from a medium-term perspective."
"On the PSU side you need some more strength in stocks like Punjab National Bank (PNB) and State Bank of India (SBI) because these stocks just do not sustain at higher levels and because that is not happening the Bank Nifty is getting stuck at that level of 11200-11500. So as I said you need to be extremely nimble-footed and use support levels in the form of 10300-10500 for the Bank Nifty to enter fresh, because at those levels the risk reward would once again be in favour of going long."