Stocks to watch: SBI, PNB, HDFC

It was a blood bath on Dalal Street as US financial turmoil sent indices plunging right from word go. The markets however erased some of the early losses as falling crude and hopes of a Fed rate cut cheered beleaguered traders.

The Nifty closed at 4,073 down 156 points, while the Sensex shut shop at 13,531 down 470 points.

Technical Analyst Ashwani Gujral is positive on Reliance, State Bank of India, Punjab National Bank, and HDFC.

Here's how Ashwani Gujral views the stocks on board:

On Reliance Industries : 
Reliance could go down to Rs 1,700. That is probably the final Rs 100 downside which is visible on RIL. So, one can buy around Rs 1,700-1,750 to trade it up to Rs 1,950-2,000. However, it won't fall much lower than Rs 1,700.

On SBI : 

State Bank of India has not declined even after the Nifty  fell from 4,550. If one has a stop loss around Rs 1,350-1,400 on SBI, it still looks good for about Rs 1,680-1,700.

On PNB :
Rs 440 is key support for Punjab National Bank. From here, the stock can go up to Rs 530 levels.

On Maruti Suzuki:
Maruti Suzuki has been beaten down. It has got support at around Rs 650. In a good scenario, it could touch Rs 800.

On HDFC :
HDFC is one of the first counters to come back on a bad day. Here, one could keep a stop loss of about Rs 2,162 and probably look for a bounce up to Rs 2,500.

On Nagarjuna Fertilizers , Bajaj Hindustan, and Balrampur Chini :
Till global markets are in this situation, I do not think much should be expected from midcaps. They should all test their July 15 lows and even break them. Rs 28 on Nagarjuna Fertilizers is a longer-term support level. It could test those levels. These counters have been rangebound. If the market starts recovering, one will probably see levels of Rs 46 on Nagarjuna.

All sugar stocks are likely to retest their previous bottom. Bajaj Hindustan could go to levels of Rs 155-160. Balrampur Chini could go to levels of about Rs 70. Hence, these longer-term supports should hold up.

Disclosure: I have long positions in the Nifty.

Shrikant S Chouhan , Vice-President Technical Research, Kotak Securities, is positive on Tata Steel.

Here's how Shrikant S Chouhan views the stocks on board:

On Tata Steel : 
We are particularly bullish on Tata Steel. The stock is coming down. All metals stocks are also down. However, if one looks at time theory, then in September and October commodities face some kind of sell-off. However, it is time to accumulate good metal stocks which can be then sold in February or March. Thus, one can buy Tata Steel from an investment perspective.