Canara Bank (₹361.3)

The stock of Canara Bank gained 4.6 per cent backed with excellent volume on Monday, breaking above a vital resistance at ₹350. With this rally, the stock appears to have resumed its intermediate-term uptrend that has been on place since last December low of around ₹250.

The corrective fall that was in place since May found support at ₹325 in end of June. Subsequently the uptrend resumed . Since then, the stock has been on a nascent short-term uptrend. While trending up, the stock decisively breached its 21 and 50-day moving averages on Monday. The daily relative strength index has entered the bullish zone from the neutral region. Moreover, the weekly RSI has also re-entered into the bullish zone backing the upward momentum. The daily price rate of change indicator is hovering in the positive terrain indicating buying interest.

The intermediate-term uptrend is intact. With the stock reinforcing the bullish momentum, the short-term outlook has turned positive. The stock can continue to trend upwards and reach the price target of ₹376 and ₹384 levels in the short term. Traders with a short-term perspective can buy the stock with a stop-loss at ₹353.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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