Canara Bank shares have failed to perform in line with the markets and remained under pressure despite continued buying in the markets. However, the stock is exhibiting significant accumulation in its price distribution pattern, as per ICICI Securities.
Meanwhile, metal stocks have remained largely corrected in the last couple of weeks after the outperforming while other sectors took the lead. Though, after a round of consolidation, a fresh up move is likely to be seen in metal stocks. “Stocks like SAIL are holding their strong support. The price distribution is also suggesting limited downside movement in the stock,” the brokerage said in a note.
The brokerage has recommended the two PSU stocks – Canara Bank and SAIL, as its top picks with a time frame of three months. Its Buy rating on Canara Bank comes with a target price of ₹195 and stop loss of ₹148. Whereas, it has recommended to Buy SAIL with a target price of ₹132 per share and stop loss of ₹99.
“The 30 day volatility moved higher than its 60 day volatility due to recent up move being seen in the stock. However, we believe it will subside in the days to come and ongoing momentum may continue in the stock,” ICICI Securities said in the note on Canara Bank.
For SAIL, both 30 day and 60 day volatility continued to remain lower and almost at par with each other indicating range bound move of the stock. Going ahead, the brokerage firm expects 30 day volatility to decline further from current levels, which may provide fresh momentum.
As per the BSE shareholding pattern released by Canara bank for the period ended August 24, 2021, Indian ace investor Rakesh Jhunjhunwala, known as the ‘Big Bull’, has acquired 1.59% stake or 2,88,50,000 shares in the PSU bank. On the other hand, he bought 1.39% stake in SAIL during the April-June period.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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