IIFL has recommended selling of Sept futures of Canara Bank between Rs 433 and Rs 435 or a target of Rs 417. The trend in Canara Bank continues to remain weak and yet to confirm an intermediate bottom in the near term.
Recently, prices have retreated from medium term peak of Rs 452 with the formation of shooting star and unless the decline is arrested with an hammer or bullish engulfing line, the prices are likely to head lower.
On the intra-day charts, the stock has formed descending triangle whose resistance line is placed at Rs 433 and shorting around the resistance line will certainly make reward to risk ratio more favorable.
“Hence, we recommend going short on Canara Bank Sep futures in the range of Rs 433-435 with stop loss of Rs 441 for a target of Rs 417,” the brokerage said in a note.
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