UCO Bank

Short UCO Bank at current level, says Amit Gupta, Head Derivates, ICICI Direct.

UCO Bank

Gupta told CNBC TV18, “Only the private banking which is showing some strength, otherwise the PSUs if you look at, they are under pressure. Now SBI closed almost to the 14th of month low around below Rs 2150, so I think that kind of pressure will come down to the midcap PSU banks now this is where I think the Bank Niftyremains sideways. Private banking HDFC Bank remains above Rs 2300 or Axis Bank above Rs 1220 levels, then I think there may be a more sideways move in which you can pick UCO Bank to go short because I think 90 levels around we have seen a very high futures volumes coming up in the stock and it is trading below that and in yesterday’s session also we had seen some positions getting added in this. So these kind of stocks one can look at,Syndicate Bank around 110-111 these kind of levels it is finding some support. But I think if market is not finding that kind of strength, may take out these levels and it may come down till 105-106 levels too.”
He further added, “So I am not very particular actually about the PSU midcap banking as far this strength is concerned. I think if market is moving in a range, the problems will keep on creeping in actually into the midcap banking part. So SBI has to move immediately above Rs 2200 in order to see any kind of good short covering beyond that. Otherwise I think the kind of selling we have seen in 2200 call options is SBI , it is likely to remain under pressure but yes, private banking somehow they are keeping the Bank Nifty in a range.”