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Investors with a medium-term horizon can buy the stock of Canara Bank at current levels. The stock has been in an intermediate-term uptrend since it took support at around ₹82 in September 2020. While trending up, the stock surpassed a key resistance at ₹115 in late December and continued to trend upwards. Nevertheless, the stock began to decline after marking a 52-week high at ₹174.4 in mid-February this year. This down-move was in place until the stock took support at ₹125 in late April. Subsequently, the stock reversed direction and has been on a budding short-term uptrend over the past six weeks.
Backing this uptrend, there has been an increase in volume over the past six weeks. On Friday, the stock gained 5.4 per cent accompanied by above-average volume, breaking through a key medium-term hurdle at ₹154. Also, the stock trades well above the 21- and 50-day moving averages. Both the daily and the weekly relative strength indices have entered the bullish zone from the neutral region. Besides, the daily price rate of change indicator features in the positive terrain and the weekly indicator has just entered the positive terrain, implying buying interest. Overall, the medium-term uptrend is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹175 and ₹185 over the medium term with a minor pause at around ₹175. Traders with a medium-term view can buy the stock with a stop-loss at ₹149 levels.
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