CANBK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📈 CANBK is currently trending upward with strong momentum. The stock is trading near its 52-week high, supported by bullish indicators across moving averages, RSI, MACD, and volume.

📊 Technical Analysis Summary

• Trend Status: Trending upward
• RSI (73.2): Overbought — strong momentum, but risk of short-term pullback
• MACD (3.52): Bullish crossover — confirms upward momentum
• Volume: ~24% above 1-week average — strong buying interest
• DMA 50 & 200: Price above both — confirms bullish structure
• Bollinger Bands: Price near upper band — momentum strong, but stretched

🎯 Entry & Exit Zones

• Support Levels: ₹135, ₹130, ₹122
• Resistance Levels: ₹143, ₹150, ₹158
• Optimal Entry: ₹132–₹136 (on dip)
• Exit Target: ₹150–₹158 (short-term resistance)

✅ Positive

• Price above 50 DMA and 200 DMA — confirms bullish trend
• MACD and RSI indicate strong momentum
• Quarterly PAT improved from ₹4,752 Cr to ₹4,774 Cr — 18.9% growth
• FII and DII holdings increased — institutional confidence
• PEG ratio of 0.15 — attractive valuation relative to growth

⚠️ Limitation

• RSI above 70 — overbought zone, risk of short-term correction
• Debt-to-equity ratio (15.0) — high leverage risk typical of banking sector
• ROCE (6.79%) — modest capital efficiency

📉 Company Negative News

• Stock near 52-week high — limited upside without breakout

📈 Company Positive News

• Strong quarterly earnings and consistent profitability
• Institutional accumulation and technical breakout above key averages

🏭 Industry

• Sector: Banking / PSU Bank
• Industry P/E: 8.10 vs CANBK’s P/E: 6.84 — relatively undervalued
• Sector outlook stable with improving credit growth and asset quality

🧾 Conclusion

• CANBK is in a strong bullish trend with high momentum
• Entry near ₹132–₹136 with targets at ₹150–₹158
• Monitor RSI and price action near resistance for signs of continuation or reversal
• Valuation and earnings support long-term potential, but short-term traders should watch for overbought signals