I had bought stocks of Canara Bank at Rs 255 level. The stock is trading near about my buying price. Should I exit the stock or continue holding this stock?
- Shailesh Kumar
HOLD WITH THE STOP LOSS OF RS 235 ON A CLOSING BASIS
Canara Bank is currently trading at Rs 255.65. Its 52-week high/low stand at Rs 401.7/Rs 204.75 made on November 21, 2017 and October 23, 2018, respectively. After hitting 52-week low, the stock has witnessed a sharp pullback along with above average volumes. Recently, the stock is poised to witness a breakout of the downward sloping trendline. A close above the level of Rs 255 would open the gates for further upmove, and in this case, the stock is likely to test the level of Rs 268, which is its 200-day EMA on the daily chart. The 14-period RSI has given positive crossover and is in a rising mode. The recent swing low Rs 235 is likely to act as short term support level. Thereby, we suggest holding the stock with a stop loss of Rs 235 on a closing basis for a target of Rs 268 in the short-medium term.quoting below 50. We suggest you to exit below Rs 73 level.