Trading strategies for beaten down HDFC twins, bank stocks

HDFC twins, HDFC in particular, may see some more downward pressure; whereas PSU banks like SBI, Canara Bank and BoB can rally up to 9 per cent.

After a one-day euphoria on April 4, the day HDFC-HDFC Bank merger was announced, the Nifty Bank and Financial Services indices have been sliding relentlessly. The Nifty Bank and the Nifty50 indices have shed 5 per cent each since then while the shares of HDFC and HDFC Bank have declined nearly 19 per cent during the period.

Given the sell-off, HDFC Ltd fell out of the elite club of 10 most-valued companies in terms of market capitalisation. With Rs 3.9 trillion m-cap, HDFC now ranks at the eleventh spot. 

Separately, the country's largest lender State Bank of India (SBI) has