WEALTHRAYS RESEARCH

REPORT DATE : 12-SEP-2013

REPORT TYPE : TECHNICAL

SCRIP NAME : CANARA BANK (NSE: CANBK) CMP () : 222

SECTOR TARGET PRICE

: BANKING : LEVEL 1 - 260-270 LEVEL 2 - 310-320

BUYING RANGE : 225-230

RECOMMEND Stock Analysis

: BUY

TIME FRAME

: 6-8 MONTHS Stock Snapshot 52 week high () 52 week low () - 533 - 189

Canara Bank is a contrarian investment avenue amongst PSU bank stocks on basis of Technical analysis which is on a verge of break out as stock has shown positive signs with higher volumes. Stock has consolidated at levels of 190. Stock also provides higher dividend yield amongst its PSU peers. Technical Indicators / levels 10-DMA 20-DMA 30-DMA 50-DMA 200-DMA 204 211 225 270 395 Fibonacci Levels

Mkt Cap ( Crores) - 9,847 PE ratio Support Resistance 209 / 188 240 / 270 Face Value () Div Yield(%) - 3.41 - 10 - 4.95%

Stock has created a head & shoulder pattern with strong base formation around 190 levels

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Other Technical Indicators / Analysis

Canara Bank has shown momentum on RSI above level of 50

Canara Bank crossed its 20 DMA heading towards its next resistance zone of 240-245, above which it can move to levels of 270-280

Canara Bank showing candlesticks base formation between 190-200 levels. As on September 11th, stock has shown momentum with MACD crossover & ADX trending downward indicating stock has bottomed out in short term.

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Canara Bank v/s SBI Canara Bank moves in tandem with State Bank of India, leader amongst Public sector banks. Chart depicts both stock movements over past 12 months which shows Canara bank has performed relatively better over past 3 months vis--vis SBI and being mid-cap stock, Canara Bank can provide higher returns as Nifty & SBI move upwards.

Conclusion With confluence of various technical indicators, WealthRays recommends Buy on Canara Bank with 6-8 months target of Rs.310-320. Short term traders can go long on stock / futures with targets of 260 to 270 & stop loss of 190. Long term investors can reap better dividends as yields are high & hold for higher targets by hedging with out of money puts.

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