Short ICICI Bank, Federal Bank: CA Rudramurthy

CA Rudramurthy BV of Vachana Investments told CNBC-TV18, "Stock specific, I still see some more correction happening in Bank Nifty as well as the index, so that is the reason I have picked up two stocks from banking. ICICI Bank for me definitely looks very weak. It has added a lot of open interest with prices dipping on the downwards and level of Rs 265 has been a stiff resistance on ICICI Bank. One can definitely look at shorting ICICI Bank for a target of Rs 250 with a stoploss of Rs 264."He further added, "Federal Bank for me has broken crucial support at levels of Rs 70 and it is trading decisively below that. If you see, even open interest addition has taken place with prices moving on the downside. So, definitely Federal Bank is a sell to me. Keep a stoploss in the range of Rs 69-70 which is now acting as a resistance and look at immediate target of Rs 64 and below that even Rs 60 is definitely visible on Federal Bank." "I have a sell call for a very short period onReliance Industries Future. Reliance Future has also shown resistance at levels of Rs 1,005 and today it has made a formation of open high. Definitely it is trading below previous day’s close as well as weighted average price which indicates near term weakness. So, for me Reliance is a sell in futures. Look at targets of Rs 980 with a stoploss of Rs 1,005," he added.