Canara Bank - Quant Pick - ICICI Securities

Recommendation

Buy Canara Bank in the range of Rs. 108-111
Target: Rs. 130
Stop Loss: Rs. 98
Time frame: Three months

Derivatives & Quantitative Outlook

The banking space has taken the lead in the recent up move of the market while consumption and technology stocks 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 a recovery that is likely to continue its upward momentum in the coming weeks.

Like most stocks, open interest in Canara Bank also declined substantially during the sharp decline seen in February and March. The OI came down from 23 million shares to just over 7 million shares in March. However, since then, the stock has seen gradual OI build-up in last few months but failed to exhibit and price recovery. We believe there is significant room for upside in the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_CanaraBank_Aug20.pdf

Shares of CANARA BANK was last trading in BSE at Rs.114.8 as compared to the previous close of Rs. 105.5. The total number of shares traded during the day was 2051659 in over 9207 trades.

The stock hit an intraday high of Rs. 115.75 and intraday low of 106.05. The net turnover during the day was Rs. 231989758.

Source : Equity Bulls

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