Bank Nifty made a new high. 5 stocks preferred by experts

According to Share Market Experts, this rally in banking stocks may continue further as the margins of banks are expected to improve in the short to medium term after foreign loans became costlier for large corporates as compared to Indian lending agencies. Apart from this, reducing the provisioning has also helped the balance sheets of the banks.

On banking stocks to buy in the current rally, he advised investors to look at banks that have low lending costs and should have an edge over their peers in terms of IT-enabled lending. He advised investors to buy stocks like State Bank of India (SBI), Bank of Baroda, Canara Bank, Axis Bank and ICICI Bank.

Speaking on the reasons for Bank Nifty hitting record highs, Saurabh Jain, AVP – Research at SMC Global Securities said, “The rally in Bank Nifty can be attributed to three major reasons – making foreign loans costlier for the US. Compared to Indian lenders, rising interest rates are expected to improve margins of Indian banks and lower provisioning is strengthening the balance sheets of banking institutions. Today, Indian banks’ incremental credit The ratio is above 100 which is also attracting buying interest among Dalal Street bulls.”

On the current chart pattern of Bank Nifty, Sumeet Bagadia, Executive Director, Choice Broking said, “Bank Nifty has formed Higher High Higher Low pattern on the charts which indicates a sustained bullish trend in the index. The immediate target for Bank Nifty index is 44,000 but Once it gives a closing above 44,000, we can expect more upside in the index.”

Regarding buying in banking stocks today, SMC’s Saurabh Jain said, “In the current rally, one should look at banking stocks which have an edge over their peers in terms of IT-enabled lending and have lower borrowings than their peers.” There should be cost.On this parameter, I would suggest to buy shares of Axis Bank, ICICI Bank, Bank of Baroda, SBI and Canara Bank in the current rally.

Sumeet Bagadia of Choice Broking said that ICICI Bank shares may go up since 980 1000 level in short term while SBI shares may go up 640 each level in Horizon at the moment. He advised investors to buy Axis Bank, Canara Bank and Bank of Baroda shares for the respective target. 950, 360 and 200 each.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.