Vinay Rajani of HDFC Securities says 'buy' ICICI Bank, Gujarat Alkalies

According to Vinay Rajani, banking as a sector has been outperforming for a while and technical setup of bank index is much stronger than Nifty.

From the high of January 18, the Nifty has witnessed a sharp fall of 8 per cent in a small span of time. On January 25th, it hit a low at 16,836 and recovered smartly to close at 17,267. Bank Nifty has got a much stronger technical setup than Nifty and we can expect Banks to outperform in the coming days. 200 days EMA of Nifty is placed at 16,600 odd levels and that can act as positional support. Resistances for the index is seen at 17,415 and 17,593.

Buy ICICI Bank (800) | Target: Rs 860 | Stop-loss: Rs 760