Wait and watch banking stocks like ICICI, State Bank of India, HDFC Bank: Rajat Bose

In a chat with ET Now, Rajat Bose, rajatkbose.com shares his views on bank stocks.

What is the call on banks?

The banking sector has gone for quite a bit of battering. You look at ICICI Bank, State Bank, Axis Bank, these 3 premier banks have just got severe battering, even HDFC Bank and otherwise stable from a price movement front, that is also holding out.

So, my suggestion is that if you can take slightly longer time horizon say about a year’s time or so, maybe you can buy in tranches say you buy 20% or 25% at current levels especially stocks like ICICI or State Bank and maybe HDFC Bank at a slight decline to about 420-425 kind of range.

Then chances are that you are going to make good money going forward. Say an HDFC Bank I am looking at a 520 kind of target and State Bank I am looking at a target of 1775 to about 1850 over the next 3 to 6 months. So these are possibilities from a technical point of view.