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CANBK - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.8

Stock Code CANBK Market Cap 1,32,749 Cr. Current Price 146 ₹ High / Low 161 ₹
Stock P/E 6.81 Book Value 125 ₹ Dividend Yield 2.71 % ROCE 6.79 %
ROE 18.2 % Face Value 2.00 ₹ DMA 50 148 ₹ DMA 200 129 ₹
Chg in FII Hold 2.72 % Chg in DII Hold -1.76 % PAT Qtr 5,155 Cr. PAT Prev Qtr 4,774 Cr.
RSI 35.7 MACD -0.38 Volume 2,78,37,955 Avg Vol 1Wk 4,43,87,097
Low price 78.6 ₹ High price 161 ₹ PEG Ratio 0.15 Debt to equity 14.7
52w Index 82.4 % Qtr Profit Var 25.6 % EPS 21.7 ₹ Industry PE 7.64

📊 Technical Analysis

  • Chart Patterns: Stock consolidating below resistance (161 ₹) after rally from 78.6 ₹, showing sideways movement.
  • Moving Averages: Current price (146 ₹) below 50 DMA (148 ₹) but above 200 DMA (129 ₹), indicating medium-term bullish trend but short-term weakness.
  • RSI: At 35.7, near oversold zone, suggesting potential rebound.
  • MACD: Negative (-0.38), confirming weak short-term momentum.
  • Bollinger Bands: Price near lower band, signaling possible support zone.
  • Volume Trends: Current volume (2.78 Cr) below 1-week average (4.43 Cr), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Weak due to negative MACD and low RSI.
  • Support Levels: 142 ₹ (near-term), 129 ₹ (200 DMA).
  • Resistance Levels: 150 ₹ (short-term), 161 ₹ (major resistance).
  • Optimal Entry Zone: 140–145 ₹ (close to support).
  • Optimal Exit Zone: 155–160 ₹ (near resistance).
  • Trend Status: Consolidating with mild bearish bias in short term.

✅ Positive

  • Low P/E (6.81) compared to industry PE (7.64), indicating undervaluation.
  • Strong ROE at 18.2% reflects efficient capital usage.
  • Quarterly PAT growth (5,155 Cr vs 4,774 Cr) shows improving profitability.
  • PEG ratio of 0.15 suggests attractive valuation relative to growth.

⚠️ Limitation

  • High debt-to-equity ratio (14.7) raises financial risk.
  • ROCE at 6.79% is relatively modest.
  • Short-term weakness indicated by RSI and MACD.

📉 Company Negative News

  • High leverage could pressure margins in rising interest rate environment.
  • DII holdings decreased (-1.76%), showing reduced domestic institutional confidence.

📈 Company Positive News

  • Quarterly profit variation of 25.6% highlights strong growth momentum.
  • FII holdings increased (+2.72%), showing foreign investor confidence.

🏭 Industry

  • Banking sector supported by credit growth and government initiatives.
  • Industry

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