Quant Pick - Canara Bank - ICICI Securities

Recommendation

Buy Canara Bank in the range of Rs. 103-107
Target: Rs. 127
Stop Loss: Rs. 93.5
Time frame: Three months

Derivatives & Quantitative Outlook

The banking space has taken the lead in the recent up move of the market while stocks from consumption and technology have taken a back seat. Heavily beaten down stocks from the BFSI space are showing noteworthy momentum and resilience in any intermediate market correction. In the PSU banking space, Canara Bank is one such stock that is showing early signs of recovery and is likely to continue its upward momentum in the coming weeks.

Like most stocks, open interest in Canara Bank has also declined substantially during the sharp decline seen in February and March. The OI in the stock has come down from profit booking seen in March. The OI has come down from 23 million shares to just over 7 million shares in March. However, since then, the stock has seen gradual OI build-up along with the price recovery. We believe there is ample room for further OI addition while the stock is likely to continue its positive momentum on the back of long additions.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_CanaraBank_Jun20.pdf

Shares of CANARA BANK was last trading in BSE at Rs.107.4 as compared to the previous close of Rs. 103.4. The total number of shares traded during the day was 2018393 in over 10506 trades.

The stock hit an intraday high of Rs. 108.45 and intraday low of 103.4. The net turnover during the day was Rs. 215704788.

Source : Equity Bulls

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