CANBK - Technical Analysis

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

Technical Rating: 3.6

Here’s the tactical read on Canara Bank (CANBK) 🏦📊

📉 Trend Status

Current Price (₹110) is exactly at 50 DMA, and well above 200 DMA (₹103) ➤ signals mild uptrend with consolidation

Price nearing 52W high (₹119) ➤ potential for breakout if momentum improves

Pattern forming a horizontal channel between ₹105–₹115 ➤ short-term consolidation phase

📊 Indicator Breakdown

RSI (45.7)

Bearish-neutral zone ➤ under 50 suggests some selling pressure

Bounce above 50 could attract fresh momentum

MACD (-0.30)

Slightly negative ➤ lacks near-term bullish impulse

Flattening slope ➤ possible reversal if supported by volume

Volume

Well below 1Wk average ➤ reduced market interest

Caution: watch for a spike to confirm momentum

Bollinger Bands

Price sits near mid-band ➤ low volatility zone with breakout potential brewing

⚡ Momentum Signals

Short-term momentum is cooling but not reversing

RSI and MACD show indecision ➤ sideways bias

Supportive earnings and FII uptick hint at strong underlying sentiment

🎯 Entry & Exit Zones

Play Type Zone (₹) Rationale

Entry (Support Pullback) ₹103 - ₹108 Between 200 DMA & lower channel range

Entry (Breakout Buy) ₹115+ Momentum confirmation with RSI > 50 & MACD flip

Exit (Swing Target) ₹118 - ₹121 Near resistance cluster and 52W high

Exit (Full Rally) ₹125+ If volume confirms breakout with bullish reversal

📘 Fundamentals Snapshot

P/E (5.40) < Industry PE (7.49) ➤ undervalued vs peers

PEG (0.13) ➤ strong earnings growth at low price

ROE (17.8%) is solid, but ROCE (6.79%) lags ➤ efficiency needs boost

Debt-to-equity (14.7) ➤ typical for a PSU bank; risk element to monitor

Dividend Yield (3.63%) ➤ attractive passive income

🧭 Summary

Trend: Consolidating just below key resistance

Momentum: Neutral-to-weak; potential for revival

Pattern: Sideways channel, prepping for possible breakout

Technical Rating: 3.6

Want help charting these entry levels visually or layering it with macro banking sentiment? I’ve got a few setups we could explore 📈💼.

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