Mithil Pradhan of Violet Arc Global told CNBC-TV18, "Jet Airways has broken out of a symmetrical triangle. You need to note is that this particular triangle has been forming for a period of six years now and the breakout with a higher high. It has created a higher high above the 2015 high. When I see the chart of Jet Airways, I don't see any resistance till about Rs 680 and the triangle is actually giving a target of Rs 900 plus. This is really a great development in the stock of Jet Airways. After a decade the stock is doing really well."
"My suggestion is that we should look at going long, stop loss is Rs 549, that I expect to keep and target of about Rs 685 on the upside," he said.
"In the banking space I see a lot of breakdown. PSU banking index has hit a 52-week low today. Secondly, ICICI Bank or whether it is State Bank of India, whether it is a lot of PSU banks like let us say Allahabad Bank etc, all have broken their previous lows. I particularly do not find any support in the bank Nifty till about 15200. However that is not something that is worrying me. What is worrying me is that over the last 7-8 years Bank Nifty has been moving in an uptrending channel and it takes resistance at the upper end of the channel and taken support at the lower end of the channel."
"The problem is that right now we are at the upper end of the channel and there is a big gap on the downside, a big room on the downside where bank Nifty can actually go down. The more I look at private banking or PSU banking names and the more I look at them breaking important trend deciders, the more I am convinced that actually bank Nifty will remain under pressure. The thing that we are actually recommending all our clients to go long on Nifty and short Bank Nifty because there is a very strong likelihood that Bank Nifty will continue to underperform Nifty for a much longer duration."
