Nifty PSU Bank up 2.3% as IOB takes lead; analyst recommends 4 stocks to buy for high returns

Nifty PSU Bank stocks are poised well for a bull run with certain stocks in the banking index taking the lead, Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, opines. Around 12:20 pm, the index was trading up 2.3 per cent at 2,520.35 on Thursday.  

In the 13-share index, 12 advanced while 1 share declined around this time.  

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Indian Overseas Bank (IOB) was the biggest gainer on the back of Reserve Bank of India’s decision to remove it from Prompt Corrective Action (PCA). It was trading at Rs 23.25, up almost 13 per cent around this time. On the intraday trading basis, it gained 20 per cent.  

It was followed by Central Bank of India and Maharashtra Bank, which were up over 10 per cent and 7 per cent respectively.  

India’s largest public lender State Bank of India (SBI) was the only loser around this time.  

According to Edelweiss, the Nifty PSU Bank has support at 2396 with strong support at 2281. The immediate resistance is at 2504 with strong resistance at 2611. 

Jain picked four stocks which he said have potential to give high returns. 

Stocks to Buy – SBI, PNB, Canara Bank and Bank of Baroda (BoB). 

The AVP was bullish on SBI. He said that the index heavyweight will be a big determinant in how the index moves. It has already achieved its target of Rs 450 and corrected to cross this level again. Any correction in this stock is a buying opportunity, he said. This stock was trading at Rs 454.15 around this time, down by 1.3 per cent. He puts the target price at Rs 480 and Rs 500.  

Punjab National Bank – Jain also recommends PNB stock for the target price of Rs 43 and Rs 45. He puts the stop loss at Rs 38.50. This stock was trading at Rs 40.25, up 1.5 per cent from the Wednesday closing price. 

Canara Bank - This stock today hit its target price of Rs 175, given by Jain,  to achieve a 52-week high of Rs 177.50. It was trading at Rs 173.30, up 3 per cent from the Wednesday closing price. He puts a price target at Rs 200 with a positional term view while stop loss at Rs 163. 

Top Stock to Buy – Bank of Baroda shares - This stock was trading today at Rs 82.05 on the NSE, up by 0.43 per cent.  He puts the target price at Rs 90 while the stop loss at Rs 77.   

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)