Nifty PSU Bank stocks for making money! Strong movement! SBI, PNB, Canara Bank are top buys for BIG GAINS

Banking stocks were trading in the green on Monday. While the private Banks on Nifty Bank index were trading up, their state-run peers were also trading in a positive territory. At 12:25 pm, Nifty PSU Bank was trading at 2,489.15, up almost 0.8 per cent from the previous closing on Friday

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

Banking stocks were trading in the green on Monday. While the private Banks on Nifty Bank index were trading up, their state-run peers were also trading in a positive territory. At 12:25 pm, Nifty PSU Bank was trading at 2,489.15, up almost 0.8 per cent from the previous closing on Friday.

Out of the 13 bank stocks, 11 stocks advanced around this time while one declined and one remain unchanged. The biggest gainer was Punjab and Sind Bank (PSB) followed by Canara Bank, State Bank of India (SBI). All the three stocks were trading over 1 per cent around this time. Maharashtra Bank was the only stock to be trading in the red.

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However, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking had his eyes on three stocks – SBI, PNB and Canara Bank. He said that the banking and financial services sector have a good outlook in the near to medium term and PSU Bank stocks are expected to do well lead by the index heavyweight SBI. 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 428.50 around this time, and prices were up by over Rs 4.70 or 1.12 per cent. The 52-week high on this stock is Rs 441.95 while the 52-week low is at Rs 175.50. The short term target in this stock is Rs 450 while the positional term target is Rs 500. Exiting investors should hold on to this stock to maximise gains, he added.

Jain recommends buy on dips in SBI stocks. He expects a target price of Rs 450 over the next 8-10 trading sessions. The positional term target is around Rs 500, he added.

Top Stock to Buy – PNB – Jain said that Punjab National Bank’s (PNB) shares also hold promise. This is the second largest public sector bank. PNB shares were trading at Rs 41.20 around this time on the NSE and were up 0.2 per cent from the previous closing price on Friday. The 52-week high on this stock is Rs 46.35 while the 52-week low is at Rs 26.30.

He said fresh positions can be made at corrections in the stock. The stock is currently moving sideways and will see a crucial breakout at Rs 45, he further said. He puts the target price at Rs 50-54. The stop loss is at Rs 37.5 which is an important support level.

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 153.35 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 160 while the next target price is Rs 165, the AVP said. He puts the stop loss at Rs 148 which is also an important support level. His recommendation is to accumulate it on decline. The stock is poised well for an upside from here, he further added.

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