CANBK - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.5

📈 CANBK is a strong swing trade candidate with excellent valuation, bullish momentum, and institutional support. Entry near ₹135 is optimal. If already held, consider exiting around ₹145–₹150.

📈 Positive

• 📊 ROE of 18.2% and ROCE of 6.79% reflect solid profitability for a PSU bank.
• 📈 MACD at 4.45 and RSI at 75.8 indicate strong bullish momentum.
• 📈 Trading above DMA 50 (₹123) and DMA 200 (₹111) confirms trend strength.
• 📈 Quarterly PAT improved from ₹4,752 Cr. to ₹4,774 Cr., showing consistent earnings.
• 💸 Stock P/E of 6.80 vs industry average of 8.08 suggests undervaluation.
• 📈 PEG ratio of 0.15 signals attractive growth relative to valuation.
• 📈 FII and DII holdings increased, indicating strong institutional confidence.

⚠️ Limitation

• 📉 RSI above 75 suggests the stock may be overbought in the short term.
• 📉 Volume below weekly average (3.60 Cr. vs 6.35 Cr.), indicating reduced participation.
• 📉 Debt-to-equity ratio of 15.0 is high, typical for banks but worth monitoring.

📉 Company Negative News

• 📉 Analysts flagged concerns over asset quality and provisioning in the PSU banking space.

📈 Company Positive News

• 📈 CANBK reported strong Q2 earnings with 18.9% profit growth and improving net interest margins.
• 📈 Management expects continued growth from retail lending and digital banking initiatives.

🏦 Industry

• 🏦 The banking sector is benefiting from credit growth, stable interest rates, and improving asset quality.
• 📊 Industry P/E of 8.08 reflects moderate valuation across PSU and private banks.

✅ Conclusion

• 📈 CANBK is a strong swing trade candidate with bullish technicals and attractive valuation.
• 📉 Optimal entry price: ₹135–₹137 (on pullback near support zone).
• 📈 Exit target: ₹145–₹150 (near recent high and psychological resistance).
• 📌 Watch for RSI cooling below 70 and MACD sustaining positive crossover for safer entry.

I can compare CANBK’s setup with other PSU banks to help refine your swing strategy.