A positive breakout move was seen in the canara bank chart, we are now bullish on the stock of canara bank on can start accumulating this stock at current levels as bullish engulfing pattern has formed in the charts.
The market capitalization of this company is more than Rs.25,000 crore as on 4 March 2011. EPS of the company is at Rs.88 per share and book value of the stock stands at Rs.305. At current market price (607) the stock trades with P/E of just 7, which is very attractive. Looking at these fundamentals we find that the valuation of the company is very attractive. Technically, canara bank saw the breakout above the resistance level of 595, also the EMA crossover confirms the possible uptrend.
So buy canara bank (CANBK) stock in range the of 585 – 602 for short term target 717 and 762 also place a protective stop loss below 574.
This will surely be a multibagger stock in future, with 21% upside potential in near term.