The stock of Canara Bank has been on a near-term upmove after finding support at around ₹255 in late July. Investors with a short-term horizon looking for a buying opportunity can buy the stock at current levels. The intermediate-term downtrend that commenced from the January peak of ₹478 appears to have found a base at around ₹255 recently. The subsequent upmove has decisively breached the stock’s 21- and 50-day moving averages showing initial signs of bullish momentum.
On Thursday, the stock surged 2.7 per cent reinforcing the bullish momentum. The daily RSI has entered the bullish zone and the weekly RSI is trending higher in the neutral region. The near-term upmove is gaining bullish momentum and has breached an immediate resistance at ₹300. The stock can extend its current rally and reach the price target of ₹324 and ₹331 in the upcoming sessions. Buy the stock with a stop-loss at ₹305.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)