Nifty PSU BANK down: Canara Bank, PNB shares gain, Central Bank and IOB among losers; Expert bullish on SBI

The Nifty PSU Bank stocks were trading in the red on Tuesday taking an opposite trajectory from the private counterparts on the Nifty Bank. Nifty PSU Bank was trading down 0.3 per cent at 2,397.40 at 11:50 am. Out of the 13 stocks on this index, 2 stocks declined while 11 advanced around this time.  

The two gainers were Canara Bank and Punjab National Bank (PNB). The top three losers were Central Bank, Indian Bank and Indian Overseas Bank (IOB) on Tuesday around this time. 

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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 430.15, down by almost 0.75 per cent. 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 market corrections.      

Top Stock to Buy – PNB – Jain said that Punjab National Banks shares have undergone changes in its charts are looking week now. This is the second largest public sector bank. PNB shares were trading at Rs 38.85 around this time on the NSE and were up 0.26 per cent from the previous closing price on Monday. 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 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 156.05 around this time on the NSE, up by 0.87 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. The stock is moving sideways. 

Top Stock to Buy – Bank of Baroda (BoB) 

The stocks of BoB were trading at Rs 80.95 around this time on the NSE around this time and were down by almost 0.25 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 39.50 while the 52-week low is at Rs 99.85.