Analysis: CANBK

Today’s pick is CANBK. [stockquote]CANBK[/stockquote]. After an initial uptrend till Feb, the stock started a downward move till it saw a 52 week low around the Rs. 300 levels in Sep. However, September put a fire under the stock. In the last three months, the stock moved 48% against 10% rise of Nifty’s.


Oscillators RSI and CMO are at currently at 65 and 58 – over-bought territory. Although looking at the historical reversal levels, the stock still has to track 10 points.

The MACD line is headed towards the signal line and the decreasing histogram levels are suggesting a short-term bearish move.

The long-term GMMA are fanning out to give a long-term bullish outlook for the stock. The short-term GMMA lines just saw a bearish signal because of the lines cross-over.


CANBK’s average correlation of 0.63 with the Nifty is positive and strong. The stock will be replicating the movements of Nifty given such a co-efficient. [stockquote]NIFTYBEES[/stockquote]


CANBK has a historical volatility in the range of 0.3 to 0.9. The scrip’s volatility is in the middle range.

Looking at these technicals the stock is short-term SELL. For the long-term the stock has a clear green signal for the up moves if it holds onto the current trend-line.

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