Leading stock market traders Ashwani Gujral and Sudarshan Sukhani have offered their stock trading intraday tips on CNBC-TV18.
Buy Bank Nifty On Declines: Ashwani Gujral
The market is contracting and the intraday range is very narrow. The range expansion will happen next week. The market is a buy on declines. One can also buy the Bank Nifty on dips. With the public sector banks starting to participate, one could see levels of around 20,000 by next month. The Bank Nifty closed the week at 19,414.70 levels. From the PSU bank space look at Punjab National Bank or SBI. The stocks could see an upside of 10-15 percent.
Be with Punjab National Bank (PNB) or State Bank of India (SBI). Both look like they could have another 15 percent upside. The PSU rally that started with SBI’s results has shown continuation. So, on declines these PSU banks should be bought now.
Short-Sell PSU Banks: Sudarshan Sukhani
Mindtree is in a bear market. It is a continuing sell. Godrej Consumer is distributing and making lower highs, lower lows and breaking from support levels. There will be a deep correction. It is a short sell for a shorter period. Many midcap IT stocks are simply collapsing.
Call on PSU banks is negative. Except State Bank of India (SBI), don’t touch any of the other PSU banks for buying. The uptrend will not be sustained.
SBI’s trailing 12-month (TTM) EPS was at Rs 11.31 per share. (Jun, 2016). The stock’s price-to-earnings (P/E) ratio was 22.86. The latest book value of the company is Rs 185.85 per share. At current value, the price-to-book value of the company was 1.39. The dividend yield of the company was 1.01 percent.