Choice Broking Analyst Picks PSU Bank for Investment

Ram Navami Stock Pick: Canara Bank

Recommendation: Buy Canara Bank at ₹137.30 and add up to ₹133 for targets of ₹151/₹158

Key Highlights:

• Sumeet Bagadia, Executive Director at Choice Broking, has picked Canara Bank as his Ram Navami stock bet due to a strong breakout pattern and favorable risk-reward setup for the medium to long term.
• Canara Bank has recently broken out of a rounded bottom pattern, a formation typically considered bullish in technical analysis, accompanied by a noticeable increase in trading volumes.
• The stock has managed to sustain above the breakout zone, suggesting the presence of underlying buying interest and effectively establishing the zone as a demand area.
• The prior breakout level of ₹125 acts as a key support, and any sustained move below this level could weaken the overall momentum.

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Technical Analysis:

• Canara Bank is trading around ₹137.30, with upside targets of ₹151 and ₹158 over the medium to long term.
• The stock has a strong technical base and defined support levels, making it an attractive opportunity for investors seeking to capitalize on the ongoing strength in PSU banking counters.

Market Performance:

• Canara Bank share price ended 2.55% higher at ₹136.55 on Wednesday, March 25, following a broader market rally.
• Nifty 50 and Sensex also settled over 1.5% each in trade in the previous session.
• Indian stock markets are closed on March 26 on account of Ram Navami.

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Risk Management:

• Sumeet Bagadia recommends treating ₹125 as a crucial support level from a risk management perspective.
• Investors may consider accumulating the stock in the range of ₹137.30 to ₹133, where the key 200-day exponential moving average (200DEMA) is positioned.