Canara Bank skyrocketed 26 per cent, accompanied by good volume last week. Most banking stocks witnessing buying interest after the Reserve Bank of India cut cash reserve ratio (CRR) by 0.25 per cent to 4.50 per cent on Monday. The stock jumped 9 per cent on September 18, breaking through its key resistance and intermediate-term down trend-line around Rs 365. The stock is currently testing key resistance at Rs 433.

Short-term trend has been up for the stock from its 52-week low registered at Rs 306 on August 30. Following a near-term corrective decline , the stock can breakthrough its key resistance at Rs 433 and climb to Rs 450 in the weeks ahead. Next important resistance is in the band between Rs 475 and Rs 480. Medium-term key resistances are pegged at Rs 510 and Rs 560. Short-term supports for the stock are positioned at Rs 400 and Rs 385. Only a strong fall below Rs 385 will pull the stock down to Rs 365 or Rs 350.

Housing Development & Infrastructure (Rs 87.4)

This stock too gained 20 per cent backed with good volumes in last week triggered by the CRR cut. Since early June this year, the stock has been on a medium-term sideways consolidation phase trading in a broad range of Rs 66-Rs 92. The stock’s recent rally has surpassed its 50 and 200-day moving averages and it is currently hovering well above these lines. A strong break out of the upper boundary at Rs 92 is required to take the stock higher to Rs 100 and then to Rs 114 in the medium-term.

Nevertheless, failure to move above the upper boundary will confine the stock to the aforesaid trading range. Immediate supports for the stock are at Rs 79 and Rs 72. An emphatic tumble below the lower boundary at Rs 66 will pave way for a decline to Rs 60 in the medium-term.

comment COMMENT NOW