Buy SBI for target of Rs 2,400: Nooresh Merani

Nooresh Merani of Amsec Research told CNBC-TV18, "I would be mainly looking towards State Bank of India (SBI) because the stock has fallen all the way from Rs 2,500 to Rs 2,000. It has underperformed the private banks with a big margin. It is now showing positive divergences on Relative Strength Index (RSI) which indicates the stock may shoot up towards Rs 2,200 in the short term. It is a good buy at this level with a risk-reward almost looking towards a medium term target of also Rs 2,400. So that's the top pick in the index."