Bearish on banking stocks: Amit Goel

In an interview with ET Now, Amit Goel, Director, PACE Stock Broking Services, talks about banking space.

What about banking because select stocks have done okay for themselves HDFC came out with a decent set of numbers so did Axis Bank, LIC Housing Finance?

Banking was probably the flag bearer of the last rally and bank Nifty if you look at it almost rallied by 40% from the bottom in May while Nifty rallied by around 27%-28%, so clearly there was a huge outperformance and most of the banking stocks to me look quite over stretched at these levels and even if the results of these companies, most of these banking companies are at par with the expectations. So may be even a little ahead of the expectations I do not see a run up happening in them, in fact if the market goes down from here I would tend to think that banking would go down more than what the Nifty does or what the Sensex does, so I would be a little bearish on banking for the next let say 4 to 5 weeks but after that it could pick up again, so I think in this correction banking stocks are probably good targets for actually shorting.