Nifty PSU Bank – shares trading in red with 9 declines, 4 advances; SBI inches closer to target price of Rs 450; watch out for PNB, Canara Bank

Out of the 13 stocks in the index, 4 advanced while 9 were on the decline. The biggest gainer was J&K Bank while the biggest loser was Maharashtra Bank. Among the PSU Bank heavyweights, SBI was marginally up around this time from the last closing. Punjab National Bank (PNB), Canara Bank, and Bank of Baroda (BoB) were trading with negative bias

Expert Nilesh Jain says that 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.

Nifty Bank stocks were trading in the green on Thursday with AU Small Finance Bank being the biggest gainer at 2:20 pm. Index Heavy weights HDFC Bank, ICICI Bank and Axis Bank all trading in the green around this time. However, Nifty Bank’s counterpart PSU Bank Index was trading in the red. It was trading at 2,471.50, down by 0.35 per cent.

Out of the 13 stocks in the index, 4 advanced while 9 were on the decline. The biggest gainer was J&K Bank while the biggest loser was Maharashtra Bank. Among the PSU Bank heavyweights, SBI was marginally up around this time from the last closing. Punjab National Bank (PNB), Canara Bank, and Bank of Baroda (BoB) were trading with negative bias.

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So, what are the prospects for Nifty PSU Bank stocks and which stocks will give good returns? Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking has 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 heavy weight 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 431.95 around this time, and prices were up by over Rs 0.90 or 0.21 per cent. The 52-week high on this stock is Rs 441.95 while the 52-week low is at Rs 175.50.

This stock is on its way to achieve the target price of Rs 450 in the next 5-7 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 40.50 around this time on the NSE and were down 0.5 per cent from the previous closing price on Wednesday. The 52-week high on this stock is Rs 46.35 while the 52-week low is at Rs 26.30.

This stock is now trading near its stop loss of Rs 39. He said fresh positions can be made at current levels. He puts the target price at Rs 46 with a 1-month view.

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 150.35 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.

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