Approach to banking stocks may be somewhat tentative: Dr C K Narayan
Since the market is not in its prime when it comes to spotting a trend, the best approach to go for is to have a mix of longs and shorts, Chart Advise founder Dr C K Narayan told ET Now during an interaction.
ET Now: Does it look like the pressure on PSBs could continue next week as well or do you think ther
Dr C K Narayan: Well, I think there was a mild attempt to rebound already. That is because the long weekend would have prompted short sellers to lock in some profit, take it home and perhaps spend it across this long weekend, too. But I do not see any case here for going long on it. There would have been definitely some people eyeing some bottom fishing in these names, but I do not believe you will see that spillover next week. When the new week starts, approach to these banks stocks may be somewhat tentative. So, I do not believe there will be too much action, but it might not be a repeat of the selling action unless new skeletons really come out of the cupboard.
ET Now: Some recovery came in for some of the beaten-down auto names. Even Maruti after that touch a
Dr C K Narayan: Well, in the whole pack, Ashok Leyland wears the best look on the chart and is the most trended. And even today, it is trying to make big stridesBSE -0.87 % and was only marginally beaten back at the higher level. Eicher Motors numbers have come in line, but since the stock had got down over the past many many weeks, that is attracting some sort of short covering and maybe, a little bit of value is dropping.
Tata Motors looks a little bit interesting. The auto numbers have come out quite encouraging, but today’s price action was perhaps not too robust, considering the fact that the overall market itself was quite somnolent. But the way Tata Motors is currently poised on the chart, if it makes a little bit of effort, it can get itself into the Rs 380-390 bracket without too much difficulty. For that, a little bit of support from the market should be sufficient.