Technical calls from HDFC Securities: Buy Canara Bank, Axis Bank

Technical calls from Vinay Rajani, Technical & Derivatives Analyst, HDFC securities.

NIFTY HEADING TOWARDS 12,300; SUPPORT SEEN AT 11,900
 

Nifty registered fresh all-time high at 12,132 and saw some profit-booking at higher levels on Tuesday. The bullish technical setup of Nifty is well maintained and there is no sign of bearish reversal as of yet. Nifty is heading towards the upside target of 12,300. Longs should be protected with the stoploss of 11,900.
 

BUY AXIS BANK (Rs 755) | TARGET: Rs 820 | STOP-LOSS: Rs 707

The stock price has surpassed a multiple top resistance of 754 on closing basis. It has broken out from the last three weeks' price consolidation with higher volumes. The stock has been forming higher tops and higher bottoms on the daily charts. BankNifty and Nifty Private Bank Indices have broken out on the charts and Banking sector is likely to outperform. Axis Bank carries good weight in the Bank Index.
  

Considering the technical evidences discussed above, we recommend buying the stock at the current market price (CMP) for the targets of Rs 820, keeping stop loss at Rs 707 on closing basis.

BUY CANARA BANK (Rs 222.7) | TARGET: Rs. 250 | STOP-LOSS: Rs 214

Nifty PSUBank Index has broken out from the bullish “Inverse head and shoulder”. Currently, Nifty PSUBank Index is placed at 2,600 odd levels and we expect it to rally towards 3,000 odd level in next one month. Canara Bank carries good weight in the Nifty PSUBank Index. Canara Bank itself has broken out from bullish “Inverse head and shoulder” pattern with higher volumes. After three days of consolidation, the stock has resumed its uptrend.
 

Considering the technical evidences discussed above, we recommend buying the stock at CMP, for the target of Rs 250, keeping a stop-loss at Rs 214 on closing basis

Disclaimer: Views expressed are the author's own. He may have positions in one or all of the above mentioned stocks.