Large cap banks will move in line with the Nifty: Parag Doctor

Parag Doctor, Associate Vice President Senior Analyst Technical Equities, Motilal Oswal Securities talks about banking stocks.

What would you do with ICICI Bank, SBI and HDFC Bank?

Basically the banking sector is downgraded to a market performer kind of rating technically and the kind of outperformance which supported the Nifty last 3 or 4 months may be coming to an end and we had a peak of 13300 in the bank Nifty in November and now we are down to the mid 11000s.

So most of these large cap banks which we talked about will probably move in line with the Nifty and the kind of moves which we were used to may not be happening so on the upside probably the mid 12000s in the bank Nifty would be a significant resistance while I expect today’s panic probably should be the end of the current down move at least may be at the most tomorrow opening we could have some more downside left. So broadly between mid 11000s and mid 12000s on the bank Nifty is where these large cap banks should be trading.