2 PSU bank stocks Rahul Sharma is bullish on for next 3 months

economictimes.indiatimes.com:

«This time around because the broader market participation is there, because leadership or sector rotation is coming in from different segments of the market, we feel that there is more upside to be had,» says Rahul Sharma, JM Financial Services.The data seem to be suggesting that liquidity is ample. What about the F&O side, especially the FIIs on Nifty futures, what kind of levels are you seeing?It is the FII long regression which is seen on the index futures. The kind of long position that they have seen clearly indicates that markets are in the bull grip led by the FIIs.

Now, retail has got stuck on the short side. Now, as we have seen in the past, a few months back, it was the similar situation where FIIs were short, retail was long and we saw reversal happening. This time around because the broader market participation is there, because leadership or sector rotation is coming in from different segments of the market, we feel that there is more upside to be had.

Now, 19,500 is one level which we are keeping an eye on, in case this is navigated safely in the next couple of days we may very well be headed for 19,800 and possibly 20,000 by the end of this month as well. So, it is a make or break kind of a level around this level. Bank Nifty is showing some sluggishness, at least it is not forming newer highs but the contribution which is coming from IT, from Reliance Industries which is sort of pulling the markets up today.

Apart from that, I think a bit of profit taking is what we have seen in the last two or three trading sessions. So, it is uncharted territory, difficult to identify where exactly will markets see profit taking. The best thing to do at this point in time is instead of having a hedge or instead of