Nifty PSU Bank stocks ALERT! SBI, PNB, Canara Bank are top stocks to buy, this analyst says; see buying levels, target price here

Banking stocks were trading in the green. While the private Banks on the Nifty Bank index were trading up, their state-run peers were also trading in positive territory. At 11:50 am, Nifty PSU Bank was trading at 2,517.35, up almost 1.6 per cent from the previous closing on Monday. 

Out of the 13 bank stocks, 11 stocks advanced around this time while one declined and one remain unchanged. The biggest gainer was Indian Overseas Bank (IOB) followed by Central Bank, Indian Bank and J&K Bank. IOB was by almost 9 per cent while Central Bank was trading up by over 7 per cent. 

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Indian Bank shares and J&K Bank shares were up over 4 per cent. However, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking had his eyes on three stocks – SBI, PNB and Canara Bank. Know why:-

Top Stock to Buy – SBI  

Jain said that the SBI shares are index heavyweight 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 422.85 around this time, and prices were up by over Rs 3 or 0.7 per cent. The 52-week high on this stock is Rs 441.95 while the 52-week low is at Rs 175.50. 

Jain recommends buy on dips in SBI stocks. He expects a target price of Rs 450 over the next 8-10 trading sessions. The positional term 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 42.20 around this time on the NSE and were up 1.2 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.  

He said fresh positions can be made at current levels. He puts the target price at Rs 46 with a 1-month view. The stop loss is at Rs 39.  

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 154.45 around this time on the NSE. 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.