CANBK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CANBK | Market Cap | 1,22,136 Cr. | Current Price | 135 ₹ | High / Low | 163 ₹ |
| Stock P/E | 6.20 | Book Value | 125 ₹ | Dividend Yield | 2.97 % | ROCE | 6.79 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 140 ₹ | DMA 200 | 134 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.44 % | PAT Qtr | 5,155 Cr. | PAT Prev Qtr | 4,774 Cr. |
| RSI | 42.6 | MACD | -0.16 | Volume | 2,06,40,450 | Avg Vol 1Wk | 1,93,25,010 |
| Low price | 90.1 ₹ | High price | 163 ₹ | PEG Ratio | 0.14 | Debt to equity | 14.7 |
| 52w Index | 61.2 % | Qtr Profit Var | 25.6 % | EPS | 21.7 ₹ | Industry PE | 7.99 |
📊 CANBK is trading at ₹135, below its 50 DMA (₹140) but slightly above its 200 DMA (₹134), showing weak short-term momentum. RSI at 42.6 indicates oversold territory leaning towards consolidation, while MACD at -0.16 reflects bearish undertone. Bollinger Bands suggest price near the lower band, pointing to potential support. Volume (2,06,40,450) is slightly above weekly average (1,93,25,010), showing active participation despite weakness.
💡 Optimal Entry Zone: ₹132–135 (near 200 DMA support).
📈 Exit Zone: ₹155–160 (major resistance zone).
🔎 Trend Status: Consolidating with bearish bias; reversal possible if price sustains above 140 DMA with stronger RSI recovery.
✅ Positive
- EPS of ₹21.7 and quarterly profit growth of 25.6% show consistent earnings strength.
- ROE of 18.2% reflects solid profitability.
- PEG ratio of 0.14 indicates undervaluation relative to growth.
- Dividend yield of 2.97% adds income stability for investors.
⚠️ Limitation
- High debt-to-equity ratio of 14.7 raises balance sheet concerns.
- ROCE at 6.79% is weak compared to peers.
- Price trading below 50 DMA signals short-term weakness.
- FII holdings decreased (-0.37%), showing reduced foreign confidence.
📉 Company Negative News
- No major negative news reported, but debt levels and weak ROCE remain structural risks.
📈 Company Positive News
- PAT improved from ₹4,774 Cr. to ₹5,155 Cr. quarter-on-quarter.
- DII holdings increased (+0.44%), reflecting domestic institutional support.
🏭 Industry
- Industry PE is 7.99, higher than CANBK’s PE of 6.20, suggesting undervaluation.
- Banking sector remains supported by credit growth, but asset quality risks persist.
🔎 Conclusion
CANBK shows consolidation with bearish bias, trading below 50 DMA but supported near 200 DMA. Entry near ₹132–135 offers limited risk, while exit near ₹155–160 is advisable unless momentum strengthens. Long-term investors may hold for undervaluation and earnings growth, but debt levels and weak ROCE require caution.