Stock of the week - Canara Bank Limited For Target Rs.277 By GEPL Capital
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Canara Bank
Observation
* Canara bank has started moving higher after a recent Short term correction.
* On the weekly charts we can see that after the recent 20% correction the prices have taken support at it’s 200 week moving average which also confluences with the 50% Fibonacci retracement level of the rise from 142– 247 levels. And also the prices have formed a “Morning Star” pattern near the 200 Week SMA.
* On daily timeframe stock has maintained its Higher Top Higher Bottom pattern and closed above it’s day 20 Day SMA which again suggests positive momentum could continue.
* On the indicator front the Stochastic is indicating a bullish crossover which gives us a bullish confirmation.
Inference & Expectations
* Canara Bank is starting the next leg of up move after a correction.
* The technical parameters and the indicators mentioned above, point towards the possibility of increasing bullish momentum in the trend.
* We expect this momentum to take the prices towards 245 (Previous Swing High) followed by 277 (Multiple Touch Points and 78.6% extension level of the rise form 142-247 projected from 194) and eventually towards the 300 (100% extension level of the rise form 142-247 projected from 194).
* On the downside the 200- mark will act as a support zone. If this zone is breached, our bullish view will be negated and we might see the prices move lower.
* One can buy Canara Bank at current levels with a target of 245 and 277 with a strict stop loss of 200 on closing basis.
Canara Bank Limited. LTP : 222.15 Target: ₹277 Stop Loss : 200
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