CANBK - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.4

📊 Technical & Fundamental Snapshot

✅ Strengths

MACD at 1.37 and RSI at 64.4 — bullish momentum, nearing breakout zone.

Price above DMA50 (₹110) and DMA200 (₹105) — confirms strong uptrend.

Volume surge (2.93 Cr vs 2.10 Cr avg) — heavy institutional participation.

P/E of 5.86 vs industry 7.91 — attractively valued.

PEG ratio 0.13 — deeply undervalued relative to growth.

EPS ₹19.7 and Qtr Profit Var +21.7% — strong earnings momentum.

ROE (18.2%) — solid equity efficiency.

Dividend yield 3.47% — adds income cushion.

FII holding increased (+0.84%) — foreign investor confidence.

⚠️ Watchouts

ROCE at 6.79% — modest capital efficiency.

DII holding dipped (-0.44%) — mild domestic sentiment softening.

Debt-to-equity 15.2 — high leverage typical of PSU banks.

Price near 52-week high (₹119) — limited upside without breakout.

52w Index at 90.4% — approaching resistance zone.

🧭 Trend Context (September 2025)

Canara Bank is currently trading near its 52-week high and showing signs of a potential breakout. SEBI-registered analyst Kavita Agrawal describes it as a “supertrender,” with a tendency to sustain rallies once bullish momentum kicks in. She identifies ₹102–₹105 as the ideal entry zone, with a target of ₹120 and stop-loss at ₹101.70

1

. For momentum traders, an alternate entry at ₹107 with a target of ₹121 and stop-loss at ₹107 offers a 1:4 risk-reward setup

1

.

🎯 Optimal Entry Price

Swing entry zone: ₹105–₹107, ideally on a minor dip.

Confirm entry only if RSI stays below 70 and MACD remains positive with volume >2.5 Cr.

🚪 Exit Strategy (If Already Holding)

Target zone: ₹120–₹121 (near resistance and analyst target).

Stop-loss: ₹107 (below breakout level and momentum pivot).

Exit trigger: RSI > 75 or MACD divergence near ₹121.

This setup offers a high-conviction swing with strong valuation comfort, earnings momentum, and technical structure. If you're basket-optimizing across PSU banks or financials, I can scan for peers with similar PEG and breakout setups. Ready when you are.

1

stocktwits.com

Edit in a page