PSU Bank Stocks ALERT! PNB, SBI, BOB top gainers, Canara Bank traded flat on Wednesday; Know what is working for these stocks - OUTLOOK

Nifty PSU Bank was trading positively on Wednesday taking cues from the broader market. Among other things, the ongoing rally in PSU Bank stocks is also due to the shift in trends for the PSU bank stocks which have otherwise been a market laggard, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said. Jain's stance remains ‘Óverweight’ on State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank. He also remains bullish on Bank of Baroda (BoB) in the near to positional term.      

The senior analyst reiterated his views on the banking stocks saying that they will likely lead the bull run in the markets. The PSU banks will participate in the market rally and Nifty PSU Bank index heavyweight State Bank of India (SBI) will lead the rally among its state-run peers, this technical analyst said.  

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Want to know what is aiding their upward move? Here is the answer!  

Top Stock to Buy – SBI  

Jain said that the SBI shares are doing well on the technical charts and reflect strong growth. As previously mentioned by this analyst this stock broke a 10-year-long consolidation recently to make a lifetime high of Rs 427.70 in February this year and later fizzled out. But the momentum is back now, and he sees a target of Rs 475 on the positional term basis.   

If the previous high is breached, this stock is expected to achieve Rs 475 level and the next upside is expected to be Rs 500, he further said.  Both the targets are with a 6-12-month view, Jain said.  

The 52-week low is Rs 149.45 which was achieved on 22 May 2020. At 12:40 pm, this stock was trading around Rs 416.75 on the BSE, up by almost 1 per cent from the previous closing price of Tuesday. Prabhudas Lilladher also has a Buy rating on it with a target price of Rs 480. 

This stock has been gaining over the last 6 trading sessions increasing by almost 9 per cent. FII numbers have also gone up from 801 to 880 as of March 2021.   

Top Stock to Buy – PNB – This stock was trading around Rs 39.70 around this time on the BSE. The stocks were up around 0.9 per cent. Jain said that the formations on technical charts in case of PNB look similar to those of SBI. He puts the stop loss at Rs 37 while the target price at Rs 44. This was with a short term view, he said. Over the past one month, it has outperformed the Sensex. In February, Prabhudas Lilladher gave a Buy call with a target price of Rs 43.  

Top Stock to Buy – Canara Bank - This stock was trading around Rs 150.40 around this time on the BSE almost flat from the last closing price. The first target price is Rs 170 while the next target price is Rs 190, Jain said. He puts the stop loss at Rs 148.  

Canara Bank will hold a Board Meeting on Friday to consider capital raising for FY22. Returns on this stock stand at 11 per cent as against 5.3 per sent by Sensex. 

Top Stock to Buy - Bank of Baroda – This stock has been forming higher tops and higher bottoms, Jain said. This stock was trading at Rs 81.45 on the BSE, up by almost 0.8 per cent. He said that the short term target price is Rs 86 while the positional medium term target price (2-3 months) is Rs 100.