Rekha Jhunjhunwala portfolio: Canara Bank shares rise for third straight session. Do you own?

Canara Bank shares have advanced for the third consecutive session on Wednesday, continuing their upward trend as investor sentiment grows on the possibility of another interest rate cut by the Reserve Bank of India (RBI), following a significant decline in India's retail inflation to a multi-year low.

The RBI reduced the key repo rate to 6% from 6.5%, making two successive cuts of 25 basis points in its latest monetary policy sessions.

Additionally, the positive outlook for the banking stock was bolstered by recent news that prominent investor Rekha Jhunjhunwala included Canara Bank in her portfolio during the quarter that ended on March 31, 2025, acquiring a 1.46% stake in the public sector bank.

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She had previously sold this stock in the December quarter before deciding to buy it back in the most recent quarter. As of September 30, 2024, her ownership in the company was recorded at 1.42%.

The Nifty Bank index climbed 0.70%, reaching an intraday peak of 52,749 points. Individual stocks like Federal Bank, Bank of Baroda, Canara Bank, and Punjab National Bank increased by as much as 2%. Major bank stocks such as Kotak Mahindra Bank, Axis Bank, IndusInd Bank, and State Bank of India also saw gains exceeding 0.5% through the session so far.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, highlighted that PSU banks are in strong buzz today and Canara Bank shares as well is showing great strength.

Technical Views

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, stated that Canara Bank shares posted eight consecutive down months before triggering a dead cat bounce in March, with follow-through seen in April. On the daily chart, the stock has reclaimed its 10, 20, and 50-day moving averages, now acting as key supports.

“Any pullback towards the ₹90 zone offers a solid buy-on-dips opportunity. The initial upside target is ₹105, which marks the 50% retracement of the entire decline. Momentum looks favourable for a short-term bullish move,” added Jain.

Further, Riyank Arora, Technical Analyst, Mehta Equities Ltd, explained that Canara Bank shares is showing a strong and positive chart pattern, suggesting that the stock is in an uptrend. The RSI on the daily chart is at 61, which indicates healthy Momentum and room for more upside before getting overbought.

"The stock is trading above key support levels and is holding well above important moving averages, adding to the bullish sentiment. If it manages to break above the ₹96 level, we could see a further rally towards ₹100– ₹104 in the short term. Overall, the trend looks positive, and it may be a good idea to consider buying on dips for potential gains.

Canara Bank shares today

Canara Bank shares today opened at ₹93.46 apiece on the BSE, the stock touched an intraday high of ₹94.50 apiece and an intraday low of ₹92.63 per share. According to Trendlyne data, the stock price decreased by 20.73% and lagged behind its sector by 33.36% over the last year. Canara Bank shares have gained about 5% in the three-straight sessions.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.