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Rakesh Jhunjhunwala portfolio stock Canara Bank has climbed to new 52-week high in early morning deals on Thursday session. Canara Bank share price today opened with an upside gap and went on to hit new 52-week high of 291.50 apiece on NSE within few minutes of stock market's opening bell, logging more than 2.50 per cent intraday gain in few minutes of market opening.

According to stock market experts, bulls are highly positive on banking stocks, especially mid-sized private and public sector bank. They said that in the wake of ease in Covid-19 stress, Canara Bank and other PSU banks have managed to contain its provisioning to a larger extent that is expected to fuel its balance sheet in future. They said that Canara Bank shares are looking highly positive on chart pattern as it has given breakout on both weekly and monthly chart. They advised day traders to avoid taking any 'short' position in Canara Bank stocks and suggested both cash and F&O traders to look at buy on dips strategy PSU bank stock has strong support at 275 apiece levels.

Reasons for uptrend

Speaking on the reason for continuous rally in Canara Bank shares, Ravi Singhal, CEO at GCL Securities said, "Entire banking sector is looking bullish as Bank Nifty index is on cusp of giving fresh breakout at above 42,000. The reason for this uptrend in banking stocks is lowering provisioning in most of the banks. So, bulls are expecting sharp upside in mid-sized private and PSU banks in their profit and strong improvement in their margins. That's why mid-sized banking stocks are in uptrend and this trend is expected to continue for next three to four quarters."

Advising day traders to avoid taking any short position, Ravi Singhal of GCL Securities said that fresh investors should look at 'buy on dips' strategy and existing shareholders should hold the stock for mid-term target of 330 to 340 apiece levels.

Rally expected to continue

Expecting sharp upside in Canara Bank share price, Sumeet Bagadia, Executive Director at Choice Broking said, "Canara Bank shares are in continuous uptrend as the stock has given breakout on weekly and monthly chart pattern. The banking stock is trading above July 2019 high and it may hit 300 apiece levels in near term. Those who have this stock in their portfolio can hold the stock for 300 and 325 target maintaining stop loss at 270 levels."

The Choice broking expert went on to add that fresh investors can also buy the stock for short term target of 325 maintaining stop loss at 270 apiece levels.

however, Ravi Singhal of GCL Securities advised positional investors to buy and hold the stock for one year target of 400 as the stock is looking highly bullish from both fundamental and technical perspective.

Rakesh Jhunjhunwala shareholding in Canara Bank

As per the shareholding pattern of Canara Bank for July to September 2022 quarter, Rakesh Jhunjhunwala holds 2,68,47,400 Canara Bank shares, which is 1.48 per cent of total paid up capital of the PSU bank.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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