CANBK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | CANBK | Market Cap | 1,24,749 Cr. | Current Price | 137 ₹ | High / Low | 163 ₹ |
| Stock P/E | 6.34 | Book Value | 125 ₹ | Dividend Yield | 2.91 % | ROCE | 6.79 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 146 ₹ | DMA 200 | 134 ₹ |
| Chg in FII Hold | 2.72 % | Chg in DII Hold | -1.76 % | PAT Qtr | 5,155 Cr. | PAT Prev Qtr | 4,774 Cr. |
| RSI | 38.2 | MACD | -3.80 | Volume | 1,86,87,878 | Avg Vol 1Wk | 2,31,25,447 |
| Low price | 83.4 ₹ | High price | 163 ₹ | PEG Ratio | 0.14 | Debt to equity | 14.7 |
| 52w Index | 68.0 % | Qtr Profit Var | 25.6 % | EPS | 21.7 ₹ | Industry PE | 7.57 |
📈 Chart & Trend: CANBK is trading at ₹137, below its 50 DMA (₹146) but slightly above its 200 DMA (₹134). This indicates short-term weakness but long-term support remains intact.
📊 Momentum Indicators:
- RSI at 38.2 suggests oversold conditions, potential for rebound.
- MACD at -3.80 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (1.86 Cr) is lower than 1-week average (2.31 Cr), showing reduced participation.
🔑 Support & Resistance:
- Support zone: ₹132–₹134 (near 200 DMA)
- Resistance zone: ₹145–₹148 (near 50 DMA)
- Breakout resistance: ₹155–₹160
- Long-term support: ₹125
📌 Entry & Exit Zones:
- Entry: ₹132–₹136 (near support and 200 DMA)
- Exit: ₹145–₹155 (resistance zone)
- Stop-loss: ₹128
📉 Trend Status: Consolidating with bearish bias. Needs a breakout above ₹146–₹148 to confirm trend reversal.
Positive
- EPS of ₹21.7 with PEG ratio of 0.14 indicates strong undervaluation.
- ROE at 18.2% reflects strong shareholder returns.
- Quarterly PAT growth (₹5,155 Cr vs ₹4,774 Cr) shows improving profitability.
- FII holdings increased by 2.72%, signaling foreign investor confidence.
Limitation
- High debt-to-equity ratio of 14.7 raises leverage concerns.
- ROCE at 6.79% is weak compared to industry benchmarks.
- Stock trading below 50 DMA indicates short-term weakness.
- DII holdings decreased by 1.76%, showing reduced domestic support.
Company Negative News
- No major recent negative news reported, but high leverage remains a structural risk.
Company Positive News
- Strong quarterly profit growth and consistent dividend yield of 2.91%.
- FII inflows indicate growing foreign confidence in the bank.
Industry
- Industry PE at 7.57 vs stock PE at 6.34 shows relative undervaluation.
- Banking sector supported by credit growth and government reforms, though NPA risks persist.
Conclusion
⚡ CANBK is consolidating with short-term weakness but long-term support intact. Entry near ₹132–₹136 offers margin of safety, with exit targets around ₹145–₹155. Strong fundamentals and FII inflows support medium-term growth, but high leverage and weak ROCE remain key risks.
Would you like me to extend this into a basket overlay with peer benchmarking against other PSU banks (like SBI, Bank of Baroda, and PNB) to highlight relative strength and sector rotation opportunities?