Canara Bank showing signs of breakout from long consolidation phase: Rupak De
After rallying 10.5% this week, PSU bank stock Canara Bank is showing signs of a potential breakout from a long consolidation phase, says Rupak De, Senior Technical analyst at LKP Securities.“A bullish rounding bottom formation has been formed, further confirming the positive outlook for the stock. This pattern indicates a potential reversal in the trend from bearish to bullish,” says the analyst who has a target price of Rs 355 and Rs 370 on the counter.Edited excerpts from a chat:Nifty has now been scaling new peaks every other day. Are the charts giving overbought signs? On Thursday, the Nifty reached another all-time high after two days of consolidation, indicating a breakout in the upward direction.
The overall trend appears to be positive as the index is comfortably sitting above a key short-term moving average (50DMA). Additionally, the weekly RSI has given a swing high breakout, which again points towards rising bullish momentum. However, a non-stop rally of 900 points from 18600 level and a PCR ratio of around 1.50 suggest a slightly overbought condition for the market.
The immediate resistance is visible at 19500; a failure to move above 19500 on a sustained basis might call for profit booking in the market. On the other hand, a decisive breakout above 19500 may take the index towards 19725/20140. Support on the lower end is pegged at 19300/19200.
The current trend is likely to remain in force as long as it remains above 19200.PSU bank PNB surprised with an upside of around 17% this week. What would be your trading strategy in the stock going forward? The stock has successfully surpassed the previous swing high on a weekly closing basis, indicating a strong upward momentum. Additionally, it is maintaining its
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