CANBK - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

🏦 Canara Bank (CANBK): Swing Trade Potential?

CANBK offers an appealing setup if you're looking for value plays with technical support, but it’s not without caveats. The stock is trading right at its 50-DMA ₹110, forming a base, and its valuation metrics are compelling — though technical indicators are indecisive.

✅ Key Positives

🔎 P/E of 5.40 vs Industry PE 7.49 — deeply undervalued

📈 EPS ₹18.4 and Qtr Profit Var +23.1% show strong earnings

💸 Dividend yield of 3.63% — attractive for yield seekers

🧲 RSI 45.7 indicates possible accumulation zone

🛢️ Price near both 50-DMA and 200-DMA — trend equilibrium

📊 FII holding up 0.84% — emerging institutional support

⚠️ Watch-Outs

🔕 MACD negative (-0.30) — weak momentum

🧯 Volume below 1-week average — thinning participation

⚖️ Debt-to-equity of 14.7 — very high leverage for swing traders

📉 Flat PAT trend — ₹5,070 Cr. to ₹5,007 Cr.

Overall, CANBK offers a value-driven swing trade with technical support at current levels — ideal for dip-based entries and moderate target plays.

🎯 Optimal Entry Price

Buy Zone: ₹107–₹110 — at DMA confluence, good support region

Entry if

RSI rises above 50

MACD stabilizes or turns up

Volume exceeds 4 Cr.+

Stop-Loss: ₹102 — just below 200-DMA

🚪 Exit Strategy (If Already Holding)

Initial Target: ₹115–₹117 — short-term resistance

Stretch Target: ₹119 — 52W high retest

Trail Stop: Raise to ₹108 after crossing ₹115 to lock profits

📌 Closing Take

CANBK is a technical base + valuation play, ideal for traders who lean toward low P/E bank stocks with decent ROE. The high debt and weak momentum tone it down as a breakout candidate, but it's good for a structured, short-term swing with discipline.

If you’re open to scanning other PSU banks or high-volume financials with cleaner technicals, I can surface a few swing-ready contenders. Just tap me. 💼📈

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