Bull's Eye: SBI, PNB, Canara Bank hit 52-wk highs as Nifty PSU Bank gains 3% on Monday – See new targets

Strong rally continued in Nifty50 and BSE Sensex on Monday after a truncated trade week. While the former was up 0.9 per cent and was trading at 18,508.90, the latter was trading at 61,863.90, higher by 557.95 points or 0.91 per cent from the Thursday closing.   

As expected, banking stocks were trading strongly with the public sector banks taking a lead in terms of gains over their private peers. Nifty PSU Bank was up 3 per cent around 1:50 pm at 2,797.05.   

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In the 13-share index, all the stocks advanced with no declines. The top gainers were Punjab National Bank (PNB), Union Bank of India and J&K Bank. They were up 8.2 per cent, 4.9 per cent and 4.2 per cent respectively.   

Indian Bank, Bank of India and Punjab & Sind Bank, gained over 3 per per cent each on the intraday basis.  

Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking was bullish on the PSU bank stocks. He retained his view on State Bank of India (SBI), Bank of Baroda (BoB), Canara Bank and PNB.  

SBI shares – The stock hit its 52-week high and also its target price of Rs 500 on the intraday basis. It was trading at Rs 495.35 on the NSE around this time and was up almost 1 per cent from the last closing price. He recommends a ‘Hold’ on this stock for a fresh price target of Rs 550 and a stop loss of Rs 465. Buy on dips is also advised for investors who want to put this stock in their portfolios.  

PNB share – Another stock which hit its 52-week high at Rs 48.20 on the intraday basis. He recommends a buy on dip for new positions and a Hold for existing investors. The target price is Rs 50 while the stop loss is Rs 43.  

Bank of Baroda – BoB shares also hit their targets of Rs 90 and were trading around Rs 91 on the NSE. Buy on dips is recommended at a price target of Rs 100. He puts the stop loss at Rs 83. The 52-week high for this stock is Rs 99.85 which it hit on 19 Feb 2021.   

Canara Bank - This stock was recommended previously by Jain for a target price of Rs 200. It was trading at Rs 197.50 on the NSE around this time, up almost 2 per cent. This stock hit a high of Rs 198.85 today on the intraday basis. Buy with a target price of Rs 225 and a stop loss of Rs 175.  

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)