Banking stocks are undergoing a pullback rally: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about banking stocks.

What is the call on some of the banking counters, Axis Bank, SBI, ICICI Bank even a Punjab National Bank?

They found support for the moment. Axis Bank has found support around 1200 but chances are that this is kind of a pullback rally. The pullback should not cross 1300 on Axis Bank. Similarly with State Bank, again pullback which should not get past 2700. So entire market seems to be in a pullback mode and chances are once we start declining again, banking will lead on the downside.

So people should be very cautious of buying around 5600 because there is no follow through buying the premium, it is totally vanished. There is in fact discount for most of the day. That means long positions are not getting built at higher levels.