Banking stocks will likely lead the bull run in the markets, Nilesh Jain Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said. 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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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 1 pm, this stock was trading around Rs 409, up by almost 2 per cent from the previous closing price of Friday 

Top Stock to Buy – PNB – This stock was trading around Rs 39.40 around this time on the NSE. He 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. 

Top Stock to Buy – Canara Bank - This stock was trading around Rs 158.10 around this time on the NSE. The first target price is Rs 170 while the next target price is Rs 190. He puts the stop loss at Rs 148. 

All 13 Nifty PSU Bank stocks were trading with a positive bias on Monday around this time.