Nifty PSU BANK up 2% - SBI, Canara Bank, BoB lead index movement on Monday; Analyst BULLISH on all three – BUY for these targets

Nifty Bank indices were trading in the green on Monday taking cues from the buoyant stock markets as Nifty was trading up by over 200 points or 1.2 per cent around 3 pm. The Nifty PSU Bank index was trading at 2,319.45, up by almost 2 per cent around this time.  

Out of the 13 stocks on the Nifty PSU Bank, 12 were trading positively while one stock declined.

See Zee Business Live TV Streaming Below:

The top gainers around this time were Bank of Baroda shares (BOB shares) followed by the index heavyweight State Bank of India shares (SBI shares). Canara Bank shares were the third biggest gainer around this time. The lone loser was Indian Bank.

Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking reiterated his stance 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 422.90, up almost 2.5 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 market corrections.       

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 155.20 around this time on the NSE, up by 2.4 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 76.90 around this time on the NSE around this time and were down by almost 0.56 per cent. The stock has corrected by almost Rs 4-5 over two weeks and this is the time to enter the stock, he said. 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.