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Canara Bank Ltd

Observation

* CANBK on the monthly time frame can be seen moving higher since June 2020, indicating that the long term trend of the stock remains bullish.

* In the week ended 1st October 2021 the prices managed to break above the a multi month consolidation, this breakout was backed by good volume buildup, indicating participation in the up move.

* The Bollinger bands plotted on the weekly time frame is currently expanding as the prices move higher, indicating expanding volatility on a positive side as the prices move higher.

* On the indicator front the RSI plotted on the weekly managed to sustain above the 50 mark when the stock was in a prolonged sideways trend. Currently it can be seen moving higher towards the overbought level, indicating increasing bullish momentum in the prices.

* Going ahead the 234-241 (Multiple touch point level and 127% extension level of the rise from 82.25-174.60 projected from 124.30) is going to act as a resistance level, if the prices breach above the 241 mark we might see the prices move higher towards the 299 (Multiple touch point level).

* The 174 (Breakout level) will act as a support level, post which we might see the prices move lower towards 160 (20 Week SMA).

Inference & Expectations

* CANBK from a long term perspective seems to be in a strong bullish trend.

* The technical parameters and the indicators mentioned above, point towards the prices breaking out of a consolidation, and increasing bullish momentum.

* We expect this momentum to take the prices towards 234-241 followed by 299 levels eventually.

* On the downside the 174 mark will act as a support level if the 174 level is breached we might see the prices move lower towards 299. A breach below 174 will negate our bullish view.

* One can buy CANBK at current market price with a target of 241 and 299 with a strict stop loss of 174 on closing basis.

Canara Bank Ltd . LTP : ₹193.55 Target: ₹299 Stop Loss : 174

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