PUNJAB & SIND BANK; STOCK CALL

          CMP 82.35             BSE 17636

• In case one already has adequate exposure to the Private Sector Bank biggies like AXIS, HDFC BANK, ICICI BANK as well as YES BANK and perhaps INDUSIND BANK as also the PSU Banks such as SBI, PNB, CANARA, BOB and wants a potentially higher Beta from the PSU Bank space, then one could consider PSB as a play on the turning of the Rate Cycle.
• PSB is currently trading at half its Book Value. Of course one could argue that there would be good reasons for it being there in the first place but be that as it may,with the softening of the Rate Regime likely to usher in better tidings such as treasury gains and improvement in NIMs etc, there is very little downside risk in the Scrip.
• Technically there is adequate support in the 73-79 band and on the upside there are resistances at 91 and then 103.
• If one has adequate patience, a BUY at CMP could easily see targets of 125 before the calendar year is over.