SBI, Canara Bank, Punjab National Bank: Trading Strategies for these buzzing PSU lenders

Domestic stock indices gained on Thursday amid the expiry of the April series futures and options contracts. The falling oil prices on the back of eased geopolitical concerns supported the buoyancy in the domestic market. The BSE Sensex jumped 486.50 points, or 0.66 per cent, to settle at 74,339.44. The NSE Nifty index surged 167.95 points, or 0.75 per cent, to end the session at 22,570.35.

A few PSU banking stocks namely State Bank of India (SBI), Canara Bank and Punjab National Bank (PNB) are likely to remain in focus today. Here is what Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:

State Bank of India | Buy | Target Price: Rs 900 | Stop Loss: Rs 790
Shares of State Bank of India hit a fresh peak on Thursday. The breakout above the hurdle of Rs 780 triggered short coverings, resulting in a sharp up move that could send the stock towards the Rs 900-mark. The immediate support exists at Rs 790 level, as per the daily chart. The stock is yet to enter the overbought category in terms of the Relative strength index (RSI), providing more room for further upside.

Canara Bank | Hold | Target Price: Rs 700 | Stop Loss: Rs 590
Canara Bank must stay sustainability over the key mark of Rs 620 to embark on the fresh rally. While the current bias suggests a positive undertone, the major move towards Rs 700 is expected once the counter displays a resilient move over Rs 620. On the downside, key supports exist at Rs 590 and Rs 575 levels.

Punjab National Bank | Hold | Target Price: Rs 155 | Stop Loss: Rs 127
A major Punjab National Bank breakout exists over the key hurdle of Rs 140. When that mark is overcome, PNB shall see sharp moves toward Rs 155 and Rs 170 levels. The underlying trend is bullish until the support of 50-daily moving average (DMA) at Rs 127 is protected on a closing basis.


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