Canara Bank Share Price Target: Brokerage firm Choice Equity has recommended 'Buy' rating on Canara Bank shares. The brokerage said that Canara Bank is its top pick on the occasion of Ram Navami.
The brokerage has set a target price of Rs 151 and Rs 158 on Canara Bank shares.
The target price of Rs 158 implies an upside of 15 per cent from Wednesday's (March 25) closing price of Rs 136.60 on NSE.
Sumeet Bagadia, executive director, Choice Equity said that Canara Bank shares had earlier witnessed a breakout from a rounding bottom pattern, which is typically considered a bullish formation.
This breakout was supported by a noticeable increase in trading volume, indicating strong participation and reinforcing the strength of the move.
Following the breakout, the stock experienced an upward rally and has since undergone a retracement, returning to retest the breakout zone.
It has managed to sustain above this level, suggesting the presence of underlying buying interest and effectively establishing this zone as a demand area.
On the weekly line chart, the prior breakout level is observed around 125, which now acts as a critical support level. Any sustained move below this level could weaken the overall momentum.
Based on the current technical structure, investors may consider accumulating the stock in the range of Rs 137.30 to Rs 133, where the key 200-day exponential moving average (200 DEMA) is positioned. From a risk management perspective, the Rs 125 level should be treated as a crucial support.
On the upside, the stock has the potential to move towards the Rs 151 and Rs 158 levels over the medium to long term.
