Book profits in SBI close to 2350: Sanjeev Agarwal

Sanjeev Agarwal, Director, Dynamix Research and Capital Management in a conversation with ET Now talks about SBI.

What is your call on the entire banking space as well as SBI we started off the year where they said that credit growth would be maintained at 20% is that possible and looking at NIMS as well, how were you viewing these counters?

PSU Bank if you see as a block they are doing really well and if you see even when the market was crashing in May some of the PSU banks were continuously making a new high and SBI though it has not made a new high, has been trading in a range somewhere around 2100 to 2350 and this has been a range for last 2 months.

I feel it has a very strong resistance in this range 2350 and above that 2500 has been two very strong points where the supply is coming so I feel profit booking will be a better option at this point of time because overall if we see as a market also I reiterated earlier that we are not bullish on the market and we are bearish on the market for the next 6 to 8 months.

So looking at that SBI I will advise to book profit somewhere close to 2350 and if somebody doesn’t want to do that 2100 is a very clear stop loss and any close below 2100 is a definite stop loss after that the market can crack somewhere around 1800.