Nifty on track to hit 10,700; SBI, BoB top bets among PSU banks

A day of consolidation but bulls managed to keep benchmark indices afloat above their crucial support levels which is a positive sign for the bulls. The S&P BSE Sensex held on to its support at 38,000 while Nifty closed above 11,400.

The final tally: The S&P BSE Sensex closed 70 points higher at 38,095 while the Nifty50 closed 35 points up at 11,462. The S&P BSE Mid-cap index closed 0.2 percent lower while the S&P BSE Small-cap index fell 0.13 percent.

It looks like, investors are awaiting the outcome of the US Fed policy meeting due later in the week to get more cues about global market movement.

In terms of individual stock, as many as 58 stocks hit their fresh 52-week highs which include names like PVR, HDFC Bank, UPL. Jubilant LifeSciences, ICICI Bank, IDFC First Bank, Axis Bank, JustDial, and Karnataka Bank among others.

The NiftyBank hit yet another record high of 29,812. It closed 214 points higher at 29,596, led by gains in Axis Bank, Bank of Baroda, Kotak Mahindra Bank, PNB, ICICI Bank, and HDFC Bank among others.

If investors plan to play the upswing in the NiftyBank then PSU banks are looking attractive at current levels, suggest experts. Among PSUs, investors can look at SBI as well as Bank of Baroda.

“Nifty has rallied from 10,628 to 11,530 which translates into 8.5 percent return from the bottom. We are bullish on the market and expect the Nifty to climb 11,760,” Ritesh Ashar – Chief Strategy Officer – KIFS Trade Capital told Moneycontrol.

If we look at NiftyBank, it rallied from 26,762 to break its previous high placed at 27,800 which was recorded last August. The rally in the NiftyBank was led by private bank such as Axis, Kotak and ICICI Bank etc. We now feel that if investors are looking at financials now then PSUs are looking good. SBI and Bank of Baroda are stocks picks in this space,” he added.

Stocks in news

Bombay Dyeing gained 9 percent after its Mumbai project received part occupancy certificate from Mumbai Municipal Corporation.

Maruti Suzuki fell more than 2 percent after a media report indicated that the slow demand prompted the company to cut its production in March.

Shares of SPML Infra surged nearly 12 percent after the company won orders worth Rs 883 crore.

Lumax Auto Technologies slipped nearly 4 percent as the company decided to discontinue PCB manufacturing.

Lupin closed nearly 4 percent lower as global brokerage firms such as Macquarie, Credit Suisse, and Jefferies maintained their underperform rating. CLSA, which had a sell rating on the stock, slashed its target price to Rs 730 from Rs 760 earlier.

Drug major Lupin over the weekend said that it has been cautioned by the US health regulator that its Somerset (New Jersey) facility may be subject to regulatory or administrative action and that it may withhold approval of any pending applications or supplements in which this facility is listed.

Global Updates

Asian indices finished higher on March 18 amid developments on the US-China trade talk. Shanghai Composite rose 2.47 percent at 3,096.42, while Nikkei added 0.62 percent to close at 21,584.5.

Hang Seng jumped around 1 percent to end at 29,409.01 and Kospi rose 0.16 percent at 2,179.49.

European markets are trading mixed as FTSE 100 was up 0.64 percent at 7,273.27, CAC was flat at 5,408.66 and DAX was marginally lower at 11,678.21.