Banking stocks back into lime light: Vijay Bhambwani

Vijay Bhambwani, Author, CEO, BSPLindia.com (Technical Check), talks to ET Now on Bank Nifty.

Bank Nifty for the month of October has been a marked underperformer but now or at least today the Bank Nifty is leading it from the front, what does that mean?

Banking stocks were basically hammered down in the last couple of weeks and what you are seeing is this sector playing catch up. Now, Bank Nifty remaining above the 9950 or may be even 10000 would clearly indicate that banking stocks are back into the lime light till then the immediate support for the bank Nifty would be around 9200. Until the bank Nifty falls below 9200, their probability of an up move remains fairly good.

So is a level of 10000 plus entirely conceivable for the Bank Nifty?

Yes, should the Nifty cross over 5150 or 5200, it would almost automatically result in a bear squeeze on the Bank Nifty itself also and the broader market would basically nudge higher because of short covering. So Bank Nifty would also participate in the overall market.