See 5-8% downside in PSU banks: Shardul kulkarni

Shardul Kulkarni of Angel Broking told CNBC-TV18, "In private sector banks the charts were quite okay but in case of the public sector banks, it was a bear trap wherein one saw that the public sector banks rallied. Bank of India and State Bank of India, after poor results were rallying and post that we have seen that correction take place. So Bank of Baroda and Punjab National Bank are prime examples. I would not be surprised to see a follow-up selling pressure in case of public sector undertaking (PSU) banks even from current levels. There is 5-8 percent downside in the PSU banks."

"HDFC Bank has a decent chart, it is a sideways consolidation which is taking place over the last three-four months. Support levels are at lower levels around Rs 590-595 so, correction from Rs 635 to around Rs 590-595 is very much possible in HDFC Bank," he said.
"Axis Bank has just fallen off the cliff, what we see is that the stock was around Rs 1220 and post that, selling pressure has clearly emerged very strongly in Axis Bank. Support level now is at Rs 1000. Below the psychological level of Rs 1000 the stock can fall further but some pullback should be used to sell. Traders are specifically advised not to sell at current price, let the stock bounce, post that bounce one will get a very decent risk to reward ratio."