In the short term, mid-cap banking stocks good. These stocks have the capability to move much higher in coming two months.
Fundamentally UCO Bank, Bank of Rajasthan, Dena bank are very strong. They can be bought at current levels of Rs 55, Rs 76, Rs 83 respectively and can move substantially upwards.
Interest rate hikes in bank loans are not going to take place before June 2010.
Disclosure: I have holdings in UCO Bank, Dena Bank
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