HDFC Bank, ICICI Bank showing strength: Siddarth Bhamre
Siddarth Bhamre, Director-Alternate Investment and Research at InCred Equities, said HDFC Bank and ICICI Bank are showing strength. “There has been a huge bout of short covering in HDFC Bank in the last trading session. ICICI Bank is not correcting much, and Reliance numbers have been good. We are seeing another heavyweight like HUL supporting the market. There are names from other spaces like metals and some of the IT names which are correcting, but we are not seeing substantial correction going forward. Infosys has been one of the stocks that has been dragging this market down. But again, the stock has reached its strong support zone; we have seen a 10 percent rise in open interest in last trading session, which we believe, looking at the statistics and the price movement, are some long positions added at lower levels,” he said.
The risk-reward ratio is not in favour of creating fresh short positions, he said. “That doesn’t mean you get adventurous, but wait and watch this week. Though it is truncated (market holiday on January 26), it will lead to no crucial levels either getting tested or challenged. So let’s wait and watch. There are a lot of stock-specific long and short ideas and we would be long in the names which we mentioned. There are names like Bajaj Finserv and Bajaj Finance, which are showing weakness. There are some cement names which are showing weakness, and can be traded with a negative bias. Overall, I wouldn’t be too negative,” he added.