Stocks to buy today: After dipping over 11 per cent in last one and half months, Nifty Banking index has come to an attractive PE multiple of 17.64 that has gained attention of the Dalal Street observers. According to stock market experts, after the pull-back rally on Tuesday session, Bank Nifty has got strong support at 33,000 levels and it may go up to 35,500 levels in short term. Banking stocks like State Bank of India (SBI), Kotak Mahindra Bank, Federal Bank, ICICI Bank and HDFC Bank is expected to pull Nifty Bank index further northward in short to medium term.

Elaborating upon the significance of Nifty Bank index at an attractive PE, Ravi Singhal, Vice Chairman at GCL Securities said, "If we leave the year 2020 as exception, then Nifty Bank PE is at five years low, which is enough to understand the possibility of bull run in banking index and some Bank Nifty listed stocks. Those, who believe in positional investment for medium to long term investment can think of looking at quality banking stocks like SBI and Kotak Mahindra Bank shares for whopping returns." Ravi Singhal of FCL Securities said that those stocks who have their PE multiple around the Bank Nifty index may give sharp upside moves in upcoming sessions post-market bottom."

Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Bank Nifty is trading at a P/E ratio of 17.64 and a P/B value of 2.50 as of May 16th, 2022, which is below its 5-year average. Indian economy is poised to outperform its global peers in terms of economic growth in the medium to long term horizon due to the government's focus on infrastructure, rising housing & real estate demand, and recovery in private CAPEX. One of the best ways to play this investment theme is via banks. The banking sector grows as the economy grows and credit demand increases. Indian banks are adequately capitalized, and have provided for the credit costs; even the legacy NPA issue is now receding."

Santosh Meena further said that the credit demand for both the corporate and retail sectors is expected to rise in upcoming years adding, "We extremely positive about the banks as both the growth outlook is positive and valuations are reasonable. We suggest investors take advantage of the current dips to buy banking stocks like SBI, HDFC Bank, ICICI Bank and Federal Bank."

Pointing at major levels in regard to Nifty Bank index, Sumeet Bagadia, Executive Director at Choice Broking said, "After the pull back rally on Tuesday, strong support for Bank Nifty index is placed at 33,000 mark and any dip from current levels should be seen as buying opportunity for short-term target of 35,000 to 35,500 levels." Asked about the banking stock that one can think of buying for medium to long term, Sumeet Bagadia of Choice Broking batted in favour of SBI shares.