Trading ideas (Time period: 1-3 days)

Canara Bank (BUY, above Rs626, Target Rs645): The daily chart of Canara Bank depicts a bullish Inverted Head & Shoulder formation with prices crossing above the neckline of Rs620 in yesterday’s trading session. With RSI also staging a positive crossover on daily chart supports our buying argument in the counter. The stock this week, has also rebounded sharply from the support of its 50-DMA, which is likely to act as a strong support on any declines, accompanied by spurt in volumes. Based on above mentioned technical evidences, we recommend traders to buy the stock above Rs626 with stop loss of Rs618 for target of Rs645.