Canara Bank stocks have failed to perform in line with the markets and remain under pressure despite frequent buying in the markets. However, as per ICICI Securities, the stock is exhibiting significant accumulation in its value distribution pattern.
Meanwhile, metal stocks have largely corrected in the past few weeks after outperforming, while other sectors have made gains. However, after the consolidation phase, a new rally in metal stocks can be seen. “Shakes like SAIL are getting their strong support. Price distribution is also indicating limited downside in the stock,” the brokerage said in a note.
The brokerage has recommended two PSU stocks – Canara Bank and SAIL lifts up With a time limit of three months. Its buy rating on Canara Bank comes with a target price of ₹195 and stop loss ₹148. Whereas, it has recommended buy with a target price of ₹132 per share and stop loss of ₹99.
“The recent upward move in the stock caused 30 day volatility to exceed 60 day volatility. However, we believe this will ease in the coming days and the continued momentum in the stock may continue,” ICICI Securities said in a note on Canara Bank.
For SAIL, both 30 day and 60 day volatility remain low and almost equal to each other indicating range bound movement of the stock. Going forward, the brokerage firm expects a further decline in 30-day volatility from current levels, which could provide fresh momentum.
As per the BSE shareholding pattern released by Canara Bank for the period ended August 24, 2021, Indian veteran investor Rakesh Jhunjhunwala, popularly known as the ‘Big Bull’, held 1.59% stake or 2,88,50,000 in the PSU bank. Shares acquired. On the other hand, he bought 1.39% stake in SAIL during the April-June period.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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