Nifty banking indices were trading with a negative bias on Monday at 10:20 am. While the Nifty Bank was trading at 35,153.05 around this time, down by almost 16 points, its public sect peer Nifty PSU Bank was down over 2.3 points and was trading at 2,385.85. 

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Out of the 13 stocks on the Nifty PSU Bank index, 3 advanced around this time, 9 declined while 1 stock remain unchanged. The three stocks that were trading positively were Canara Bank, J&K Bank and Indian Bank. Meanwhile the top three losers were Maharashtra Bank, UCO Bank and Indian Overseas Bank (IOB). 

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Nilesh Jain Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking reiterated on the PSU Bank stocks and said that certain stocks are likely to do well and will move in tandem with the markets. He remains bullish on the State Bank of India (SBI). Two other stocks that are in his radar include Canara Bank and Bank of Baroda (BoB). He also recommended an “avoid” for PNB stock.   

Top Stock to Buy – SBI         

Jain said that the SBI shares are index heavy weight and any material impact on the index and overall market will be from the movement of State Bank of India shares. This is a good time to buy this stock. The target price of Rs 450 was achieved on 4 August and since then it has been trading at a discount. The immediate hurdle is at Rs 465 and the next hurdle is at Rs 500. The support is at Rs 400, he said.    

The stock was trading at Rs 430.10 on the NSE, down by almost 0.3 per cent from the closing price on Friday. The 52-week high on this stock is Rs 467.45 which the stock achieved on 4 August while the 52-week low is at Rs 175.50. Buying opportunity for the investors on every market correction, he said.        

Top Stock to Buy – PNB – Jain said that Punjab National Banks shares have undergone changes in its charts are looking weak now. This is the second largest public sector bank. PNB shares were trading at Rs 37.70 around this time on the NSE and were down 0.13 per cent from the previous closing price on Friday. The 52-week high on this stock is Rs 46.35 while the 52-week low is at Rs 26.30.         

This support zone is around Rs 35.50, he said. Existing investors should hold on to this stock and he advised no fresh investments at current levels. He puts the target price at Rs 46 with a 1-month view.        

Top Stock to Buy – Canara Bank - This stock is another PSU Bank counter Jain was optimistic about. The Canara Bank stocks were trading at Rs 158.25 around this time on the NSE, up by 1.44 per cent. The 52-week high on this stock is Rs 174.60 while the 52-week low is at Rs 82.25. The first target price is Rs 165 while the next target price is Rs 175, the AVP said. He puts the stop loss at Rs 143. He has a 1-month view on this stock.   

Top Stock to Buy – Bank of Baroda (BoB)   

The stocks of BoB were trading at Rs 80.45 around this time on the NSE around this time and were down by almost 0.62 per cent. He recommended buy on decline with a stop loss at levels of Rs 76.50. He puts the target price at Rs 86 which is a also a resistance level. The 52-week high on this stock is Rs 99.85 while the 52-week low is at Rs 39.50.