Prefer Kotak Mahindra Bank, target Rs 800: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "From the private banking space, Kotak Mahindra Bank can be looked at, because if you look at IndusInd Bank or YES Bank, they have already run up very fast. But there is still a lot of room in Kotak Mahindra Bank. In the last one and a half years, it has been moving around Rs 650-740. In fact, it made the life high in the month of July 2015. Now almost 10-11 months have gone off. It has been quite resilient whenever major profit booking trends were observed in the market and now, after 11 months, it has made a new high again.""In the last couple of sessions, it has been closing above that level and has been a good stock where a major short covering trend has already panned out. Around 43 percent of OI has already been cut. It was hitting Rs 650-670 kind of levels in the last 3-4 series and now 30 percent of OI additions since the month of May has already been seen. This is likely to take the stock beyond Rs 800. So, eventually among the private banking space, I understand Axis Bank news has come out and it has been a laggard so far. So, there may be a surge there. But among the outperformers, I will prefer Kotak Bank right now," he said."After SBI's results, the trend possibly in the other PSU banking also may be something like more short-covering. Instead they have not made the new lows after the recent very pathetic results. So, that is another sign of some kind of reversal happening in the short-term in this space. The best play because this is a long series and some of these stocks have good liquidity in options. So, that is why a good play to play PSU banking right now is to buy the call options in the stocks.""So, same can be done in Punjab National Bank also because the move of another 8-10 percent is possible. It had given a very bad result but again, it did not make the new lows. And from here some pull back is possible in the stock. So buy the Call options and then play the stock."