<b>Three banking stocks you can buy</b>

Puneet Wadhwa talks to Ranak Merchant on the best banking stocks to buy

Smartinvestor : Hi, this is Puneet Wadhwa and we have Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services back with us for the Talk Show.

Smartinvestor : Hello Ranak and welcome back.

Ranak Merchant : Good afternoon Puneet.

Smartinvestor : With the annual review of the Monetary Policy for FY13 behind us now, where do you see the Nifty heading in the near-to-medium term?

Ranak Merchant : Nifty has been holding onto important support point of 5,170 in the last few sessions. The zone of 5,260-5,280 (spot) poses some resistance. Nifty needs to sustain above the same on closing basis for further upmove to unfold.

Smartinvestor : What is your take in interest rate sensitive stocks now? Can one take a long position in any?

Ranak Merchant : Banking stocks had been exhibiting good momentum ahead and in anticipation of the policy. As for the Bank Nifty 10,400 is an important level to be watched out for. As for individual names Axis Bank, Kotak Bank, Dena Bank look good. Positions to be added only if the said levels for Nifty and Bank Nifty are honoured.

Smartinvestor : Manapuram Finance has reacted negatively to the RBI's measure on gold related loans. Do you track this counter?

Ranak Merchant : Sorry do not track the stock.

Smartinvestor : Do you think it would be a good strategy to buy into defensives such as FMCG and healthcare? Do you like anything in these two spaces?

Ranak Merchant : FMCG stocks are showing signs of consolidation and can be looked at only on fresh breakouts. Amongst Pharma names Ranbaxy has seen fresh breakouts and can be bought above 518 for a target of 555.

Smartinvestor : Thanks Ranak for your time and advice. Please give us your disclosures (if any).

Ranak Merchant : DISCLOSURE: It would be safe to assume that we would have interests in the stocks that have been discussed today.

Ranak Merchant : Thank you Puneet.

Smartinvestor : Thanks. See you again soon.