Canara Bank Scales Fresh 52-Week High; Know What Analysts Say About The Bank Stock

Canara Bank shares rose over 2 per cent to hit a 52-week high of Rs 390.55 in intraday trade on BSE on Tuesday.

Canara Bank share price today opened at Rs 383.25 against the previous close of Rs 382.55 and rose a little over 2 per cent to hit its 52-week high on the BSE.

Canara Bank share price has been in the green since October 26, the day it announced its September quarter earnings. The stock is up about 34 per cent in the last one year against a 5 per cent gain in the equity benchmark Sensex.

Canara Bank reported a growth of 43 per cent in net profit to Rs 3,606 crore, compared to Rs 2,525 crore in the corresponding period last year. Its net interest income (NII) – the difference between interest earned and interest paid- in the second quarter of the current fiscal rose 19.8 per cent to Rs 8,903 crore, compared to Rs 7,433.8 crore in the year-ago period.

The gross non-performing assets (NPAs) declined to 4.76 per cent of total loans in the September quarter over 6.37 per cent in the year-ago period.

What Do Analysts Say?

Axis Securities said that Canara Bank broke above its multiple resistance zone at Rs 348 in the middle of September, climbing to Rs 387 level on the weekly chart. After retesting the breakout area, it bounced back sharply, confirming the continuation of the uptrend. The stock is exhibiting a pattern of higher high-lows on the weekly chart, forming an upward-sloping trendline that indicated a strong uptrend. The stock experienced a surge in trading volume during the breakout, indicating a substantial increase in market participation at the breakout level. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities, told moneycontrol.com: The stock price has registered fresh 52-week high of Rs 387.80 with jump in volumes. The stock has remained resilient in the recent market weakness. It has broken out from Flag pattern on the weekly chart, which indicates continuation of an primary uptrend. Target price been set at Rs 405.