Market expert SP Tulsian, in an interview to CNBC-TV18 on Tuesday, said that while the entire banking sector looks positive going forward, he prefers private sector banks over PSUs.

“In the morning, I gave a 'buy' call on the Bank Nifty... I agree that the PSU banks are seen contributing but I think more force will be coming in from the private sector banks and two or three stocks which look good could be State Bank of India (SBI), ICICI Bank and Yes Bank,” he said.

“Kotak Mahindra Bank and HDFC Bank may also participate into the rally tomorrow or day after because the weekly option expiry is really seen to be very crucial and that is having a positive outlook," he added.

On Dewan Housing Finance (DHFL), Tulsian said, “Talks are going on that the new strategic investor is seen coming in and I think the negatives are all seen behind because the kind of fear which we were seeing mainly on the shell companies existence is not seen to be existing there and that is giving a big relief ... you will see the stock moving up further, maybe to a level of Rs 178-180.”

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