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The stock of Canara Bank tumbled 4.7 per cent with above average volume on Tuesday, breaking through a key support at ₹340. Investors with a short-term horizon can consider selling the stock at current levels.
After encountering a key resistance in the band between ₹470 and ₹490, the stock started to decline in late 2014. Since then, it has been on a medium-term downtrend. In April, the stock met with significant resistance at ₹400 and the 200-day moving average, and resumed its downtrend.
The short-term trend, which is also down, got strengthened after the fall below the support at ₹340. Both the daily and weekly relative strength indices are featuring in the bearish zone, backing the downtrend. The outlook is bearish for the stock. The stock can extend its decline and reach the price target of ₹313 and then to ₹306 in the coming trading sessions. Sell the stock with a stop-loss at ₹333.5 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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