Equity Alert: CNX Bank Nifty declines 3%; likely to extend fall
MUMBAI--2:05PM--CNX Bank Nifty index was down 3% as traders built
fresh
short positions in the sector, dealers said. Also, short positions
were being
rolled in the sector ahead of expiry of the September futures
contract, they
said.
Sentiment for bank shares has weakened on concerns of high
marked-to-market losses because of exposure to global giants such as
Lehman
Brothers, dealers said.
"One can buy bank shares after further 10% correction in prices,"
said a
dealer at a domestic brokerage. He recommends buying State Bank of
India at
1,400 rupees, and Axis Bank at 650 rupees.
"It is better to stick to (shares of) public sector banks as
private
sector banks may remain volatile," said Mangesh Kulkarni, analyst,
Almondz
Global Securities.
However, Vaibhav Agarwal, analyst, Angel Broking, expects private
sector
banks' earnings to be better than their public sector peers in the
long
term, while public sector banks look good from a short-term
perspective.
State Bank of India has support around 1,510 rupees, and
resistance at
1,528 rupees, said Birendrakumar Singh, technical analyst, Religare
Securities.
ICICI Bank has support at 594 rupees, while resistance is at 619
rupees,
Singh said.
SBI was down 3% at 1,514 rupees, and ICICI Bank was down 4% at 610
rupees.
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