CANBK - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:00 am
Back to Swing Trade ListSwing Trade Rating: 4.2
| Stock Code | CANBK | Market Cap | 1,34,745 Cr. | Current Price | 149 ₹ | High / Low | 154 ₹ |
| Stock P/E | 7.34 | Book Value | 119 ₹ | Dividend Yield | 2.66 % | ROCE | 6.79 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 140 ₹ | DMA 200 | 121 ₹ |
| Chg in FII Hold | 0.51 % | Chg in DII Hold | 0.82 % | PAT Qtr | 4,774 Cr. | PAT Prev Qtr | 4,752 Cr. |
| RSI | 59.2 | MACD | 2.07 | Volume | 1,66,06,364 | Avg Vol 1Wk | 1,91,81,440 |
| Low price | 78.6 ₹ | High price | 154 ₹ | PEG Ratio | 0.17 | Debt to equity | 15.0 |
| 52w Index | 92.5 % | Qtr Profit Var | 18.9 % | EPS | 20.5 ₹ | Industry PE | 7.89 |
📊 Canara Bank (CANBK) shows strong potential for swing trading. The stock is trading above both its 50 DMA (140 ₹) and 200 DMA (121 ₹), with RSI at 59.2 indicating healthy momentum. MACD is positive (2.07), suggesting bullish sentiment. Strong quarterly profits and attractive valuation support upside. Optimal entry would be near 145–147 ₹. If already holding, consider exiting near 153–155 ₹ unless momentum breaks higher.
✅ Positive
- 📈 Large market cap of 1,34,745 Cr. ensures stability and liquidity.
- 💹 Strong ROE (18.2%) highlights efficiency in generating shareholder returns.
- 📊 Quarterly PAT rose to 4,774 Cr. from 4,752 Cr. (+18.9% variation).
- 📈 EPS of 20.5 ₹ supports earnings strength.
- 📉 Attractive PEG ratio of 0.17, showing undervaluation relative to growth.
- 📊 Both FII (+0.51%) and DII (+0.82%) holdings increased, reflecting investor confidence.
- 📈 Dividend yield of 2.66% adds investor appeal.
⚠️ Limitation
- 📉 ROCE of 6.79% is modest compared to peers.
- 📉 Debt-to-equity ratio of 15.0, indicating very high leverage typical of banks.
- 📉 Current trading volume slightly below weekly average, showing reduced momentum.
- 📉 Current price near 52-week high (154 ₹), limiting immediate upside potential.
🚨 Company Negative News
No major fresh negative news reported, but high leverage and modest ROCE remain concerns.
🌟 Company Positive News
Strong quarterly profit growth, rising institutional investor support, and consistent dividend payouts highlight investor confidence.
🏭 Industry
The banking industry trades at an average PE of 7.89. Canara Bank’s P/E of 7.34 is slightly lower, suggesting fair valuation with growth potential.
📌 Conclusion
Canara Bank is a favorable swing trade candidate with strong fundamentals and bullish technicals. Best entry near 145–147 ₹ (close to support levels). If already holding, exit near 153–155 ₹ unless momentum breaks resistance. Risk-reward is positive, with caution advised due to high leverage and modest ROCE.
I can also prepare a peer comparison with SBI and Bank of Baroda to highlight relative swing trade opportunities in the PSU banking sector.
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