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We recommend buy in Canara Bank from a medium-term perspective. From the charts of the Canara Bank, we note that the stock has been on a stable up-trend since its listing in 2002. However, after recording an all-time high of Rs 421 in early January, the stock began to decline and found support at Rs 250 level on January 22. Since this low, the stock has been moving up, accompanied with above average volume. The stock is currently trading well above the 200-day moving avera ge line. The daily momentum indicator has recovered from the bearish zone and is nearing the neutral region. The weekly moving average convergence divergence lines are featuring in the positive region. We are bullish on the stock in the medium term and expect the stock’s current up-move to continue further to Rs 350 and then Rs 420. Medium-term investors can buy the stock in corrections with a stop loss at Rs 215.

Yoganand D.

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