The short-term outlook for the stock of Canara Bank is bullish. The scrip surged 4.77 per cent on Monday after a prolonged consolidation above the 200-Day Moving Average (DMA) since the beginning of this month. Strong support is now in the ₹233-229 region. Then ₹222 – the 200-DMA is the next strong support.
The chances are high for the stock to sustain above ₹229 and can rise to ₹255 in the next couple of weeks. Traders can go long at current level and accumulate on dips at ₹234. Keep the stop-loss at ₹227 and trail it up to ₹241 as soon as the stock moves up to ₹244. Move the stop-loss further up to ₹246 when the stock touches ₹249 on the upside. Book profits at ₹253.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)