Nifty Bank stocks were trading in the red on Tuesday with AU Small Finance Bank being the biggest loser at 12:30 pm. All the 12 stocks in this index were trading negatively around this time. Index Heavy weights HDFC Bank, ICICI Bank fell by almost 2 per cent each meanwhile Axis Bank was down by almost 0.9 per cent. Nifty Bank’s counterpart PSU Bank Index was also trading in the red. It was trading at 2,385.65, down by 2 per cent.  

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Out of the 13 stocks in the index, 2 advanced while 11 were on the decline. The gainers were Indian Bank and J&K Bankwhile the biggest loser was Indian Overseas Bank (IOB) which fell by almost 5.5 per cent around this time followed by Central Bank which was down 4.8 per cent. Among the PSU Bank heavyweights, SBI was down almost 2 per cent around this time from the last closing.  

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Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that the current weakness is on the back of overall weakness in the stock markets. Bank Stocks have been impacted more. But the investors should not worry. He had recently recommended SBI, PNB and Canara Bank to investors for high returns. He maintains the targets on all these stocks. Know what he had recommended?   

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. SBI shares were trading at Rs 422.10 around this time, and prices were down by over Rs 5.80 or 1.96 per cent. The 52-week high on this stock is Rs 441.95 while the 52-week low is at Rs 175.50. This is a buying opportunity for the investors.   

This stock is on its way to achieve the target price of Rs 450 on the positional term basis. The higher target is around Rs 500, he added.    

Top Stock to Buy – PNB – Jain said that Punjab National Banks shares also hold promise. This is the second largest public sector bank. PNB shares were trading at Rs 39.70 around this time on the NSE and were down 1.60 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 stock is now trading near its stop loss of Rs 39.  He said fresh positions can be made 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 PSUBank counter Jain was optimistic about. The Canara Bankstocks were trading at Rs 145.15 around this time on the NSE, down by 2 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 an 8–10-day view on this stock.