HDFC Bank can slip to Rs 1200, Power Grid may hit Rs 204: Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "We have a strategy of going short in private banking but simultaneously we are also going long in the PSU banking stocks from this expiry perspective. HDFC Bank and IndusInd Bank are looking weak. HDFC Bank possibly can fall towards Rs 1,205-1,200 levels and if you see Rs 1,250 level which was a support from the month of July, this is breached. 1,250 Call is the highest call base now. So that means the call writers are very active at these levels. So, the upsides looks limited and it is possible that the stock can come down.""We have seen some sort of short positions also coming into futures. Almost 10 percent of addition in the last two-three sessions we have seen. The same goes with IndusInd Bank. In fact, IndusInd Bank fell very sharply from Rs 1,200 to Rs 1,100. That was purely the margin pressure in the market but now almost 25 percent of shorts have come into the stock. So these stocks were looking a little weaker. One can write the Call options of IndusInd Bank also of 1,140 Call strike which is around Rs 6-8," he said."Canara Bank and Union Bank have seen very high short closure in the last two-three sessions. The support is given by the State Bank of India (SBI), the heavyweight. Union Bank has closed near Rs 149. My sense is it is moving towards Rs 157 just on the back of the short closures.""Canara Bank, which was the outperformer previously in the PSU banking, has again come back to Rs 324, the previous high was close to Rs 330 around and I think the stock is about to take out those high levels. It can move towards Rs 338. So these strategies can work.""Power Grid possibly is looking much better, the stock had spent a lot of time near Rs 175. In the month of September and followed by the month of October, three month highs delivery buying was around Rs 175 level even in the jittery market just because the results were very good, the delivery selling still has not come in the stock. It has remained positive. We have a target of Rs 204 in it."