Heavy weight banks look a good bet: Angel Broking

Views of Ms. Sneha Seth (Equity Derivative Analyst, Angel Broking):

"The market remained quite choppy after a massive correction seen in yesterday's session. Nifty traded in a very tight range of 45 points, however decent buying interest emerged towards the fag end of the session; leading benchmark index (Nifty) to close on a flat note.

If we observe the overall activity in April series, Nifty is down merely 0.59% while the open interest has decreased 10.89%, which suggests correction in last few days was mainly because of long unwinding. On the flip side, BankNifty has added huge positions as open interest rose 23% during the series. We believe majority of the positions formed are on the long side and are still intact in the system. While, if we look at stock specific action in heavy weight banking counters (except SBIN) no major shorts were formed throughout the series. At current juncture, BankNifty has an immediate support around 21300-21400 levels and hence, we don't expect major downside in the near term. Thus, traders are suggested to avoid shorting and use declines in banking counters to add fresh longs."

Source : Equity Bulls

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