The surge in banking stocks led the benchmark indices to record highs on Thursday, with the BSE Bankex gaining 1.9 per cent. Canara Bank joined the party and gained over 10 per cent with extraordinary volumes. The stock’s fall between May and August 2013 was arrested at Rs 189.9. It reversed thereafter and has been on a medium-term uptrend since then. The stock consolidated sideways within this uptrend and eventually broke through the significant resistance at Rs 250 on Thursday. This resistance will now turn into a key support level and can provide a base in ensuing corrections. The stock is currently trading well above its 21- and 50-day moving average lines, showing signs of bullishness. Momentum indicators in the daily chart have entered the bullish zone from the neutral region indicating upward momentum. The short-term outlook is bullish for the stock. Investors with a short-term perspective can buy the stock with a stop-loss at Rs 252.5 levels with a target of Rs 269-274. .
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)