PNB is a sell: Ashwani Gujral, Market Strategist

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, in a chat with ET Now talks about the banking stocks.

You are only recommending short strategy this morning and it's all banks

Banks - after their large fall and going into today’s inflation numbers - may now have some relief rally after the inflation numbers. So these calls are for before the inflation numbers because a lot of bank stocks broke down below the bases that they were forming. So we sell Kotak with a stop of about 420 and a target of 370 is possible here. PNB is a sell with a stop of about 1160 and a target of 1080 is possible here.

We sell Bank of India with a stop of about 440 and target of 395 is possible here. We sell BoB with a stop of about 860, target of 770 is possible. We sell Canara Bank with a stop of about 590 and target of 538 is possible here.

Now what happens is in all Nifty rallies - the bank nifty tends to form a wedge and it again collapses. So we are possibly hoping that again, even in this range market, you will see some kind of a weak wedge in banks from where they will again collapse and Bank ifty will come to about 9900 to 10000.