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The Canara Bank stock has been in a long-term downtrend. In the last week of March, it breached a key support band between ₹165 and ₹170 and this has accelerated the downtrend. It went on to register a new one-year low of ₹73.65 in March.
After making 52-week low, the stock went up gradually. But it faced a substantial resistance at ₹95. Failing to breakout of that level, the stock was largely consolidating between ₹86.5 and ₹93.
Today, the stock slipped below the lower boundary of the range at ₹86.5 and is currently trading at ₹85.8, opening the door for further decline. The relative strength index and the moving average convergence divergence indicator in the weekly chart remains in the negative territory, hinting that the major downtrend remains intact.
Thus, traders looking for short-term trades can consider initiating fresh short positions in Canara Bank. While stop-loss can be placed at ₹88.5, the near-term target can be ₹80.
Supports: ₹81.3 and ₹80
Resistances: ₹87 and ₹88.5
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