The share price of Canara Bank resolved higher out of the fal ling trend channel during current weeks’ trade signalling the end of the corrective phase.

1. YOUR MINTVISORY Call us at +91-731-6642300 27OCTOBER 2014
STOCK INFORMATION
STOCK PRICE
401.60
TARGET PRICE
419-440-460
SECTOR
BANK
SYMBOL (AT NSE)
CAN BANK
ISIN
INE476A01014
FACE VALUE (IN RS.)
10.00
BSE CODE
532483
STOCK FUNDAMENTALS
MARKET CAP
18,524.15
BOOK VALUE
642.16
EPS - (TTM) (IN RS. CR.)
53.18
P/E
7.55
INDUSTRY P/E
11.01
CANARA BANK LIMITED
SPECIAL REPORT
SHAREHOLDING PATTERN
RESULTS (Quarterly )(Rs mn)
COMPANY INFORMATION
Jun’14
Mar’14
Dec’13
Sep’13
Jun’13
Sales
10,701.11
10,539.68
10,083.87
9,654.48
9,269.58
Operating profit
8,251.81
7,725.28
7,544.81
7,441.26
7,022.25
Interest
8,271.85
8,004.49
7,856.88
7,463.32
7,278.48
Gross profit
1,795.00
1,882.10
1,590.86
1,424.97
1,898.26
EPS (Rs)
17.49
13.24
8.87
14.13
17.88
Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Shri Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara Bank Ltd.' in 1910 and became Canara Bank n 1969 after nationalization. Canara Bank is engaged in providing a wide range of banking and financial services in retail banking, wholesale banking and treasury operations.
For FY 2013, Canara Bank’s net interest margins stood at 2.39 % (2.50 % for FY 2012). Total deposits with the bank stood at Rs. 3, 55,856 Cr. growing by 9.8 % over the previous year. For the same period, net NPA’s stood at 2.18 % (1.46 % for FY 2012).
The Bank’s CASA deposits to domestic deposits stood at 25.1%. The Bank’s clientele base reached 4.70 Cr., comprising 4.17 Cr. under deposit accounts and 53 lakh under borrowal accounts. 50 lakhs clientele added during the year.
The share price of Canara Bank resolved higher out of the fal ling trend channel during current weeks’ trade signalling the end of the corrective phase since May 2014 and resumption of the medium-term up trend offering a fresh entry opportunity to ride the up move. The stock price doubled during March - May 2014 period from its lows of Rs 206 to May 2014 high of Rs 478 shrugging off the bearish trend of preceding four years. In the process,Significantly, the same trend line has changed its role as support during the recent corrective decline since the May 2014 peak.
Over the past three weeks, the stock price consolidated in a narrow range above this key support resulting in a basing for- mation, which provides necessary impetus for the next up leg. Interestingly, the support near Rs 370 is also validated by the 38.2 percent Fibonacci retracement of March - May 2014 rally (Rs 206-478). Among long term momentum oscillators, the weekly RSI is seen generating a fresh positive crossover above its nine period average indicating positive momentum in the stock from a medium-term perspective. Based on various technical parameters listed above, we believe the stock price is ripe for the next up move and offers favourable reward/risk from a medium-term perspective. We project the target of Rs 460 being the 80 percent retracement of the May - August 2014 decline, which also coincides with the July 2014 peak.
INVESTMENT RATIONALE

2. YOUR MINTVISORY Call us at +91-731-6642300 27OCTOBER 2014
TECHNICAL VIEW
Our Other Recommendation for Next Week
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SYMBOL
VALUE
ACTION
RSI(14)
71.887
BUY
STOCH(9,6)
88.123
OVERBOUGHT
STOCHRSI(14)
93.867
OVERBOUGHT
MACD(12,26)
-7.540
OVERBOUGHT
ADX(14)
41.191
BUY
WILLIAMS %R
-5.048
OVERBOUGHT
CCI(14)
98.9442
BUY
ATR(14)
3.2714
HIGH VOLATILITY
HIGH/LOWS(14)
7.4929
BUY
ULTIMATE OSCILLATOR
62.969
BUY
ROC
4.889
BUY
BULL/BEAR POWER()13
11.2080
BUY
BUY: 07 SELL:1 NEUTRAL: 3
SUMMARY : STRONG BUY
SCRIP
ACTION
ENTRY
SL
TGT
TIME FRAME
CMP
REL INFRA
BUY
620-640
600
655-675
ONE WEEK
638.65
TATA STEEL
BUY
490-500
475
510-525
ONE WEEK
491.10
BHARAT FORGE
BUY
805-815
790
830-850
ONE WEEK
816.00
L&T
BUY
1640-1670
1600
1695-1740
ONE WEEK
1660.35
HINDALCO
BUY
164.05
162-165
156
170-175
ONE WEEK
CANARA BANK is looking strong on charts. We advise to buy around 400-408 with stop loss of 390 for the targets of 419- 440-460 levels. RSI is also showing upside momentum in it on weekly charts.
Performance of Previous Week
SCRIP
LOT
ACTION
ENTRY
SL
TGT
P&L
REMARK
CLOSE / HIGH
HINDUNILVR
500
BUY
750-760
730
780-790
-10000.00
SL TRG
739.45 / 766.40
TATA MOTORS
500
BUY
510-510
500
525-540
32000.00
NEAR FINAL TGT
537.05 / 538.40
HDFC
250
BUY
1020-1040
1000
1065-1085
15000.00
BOTH TGT HIT
1108.80 / 1114.20
BAJAJ AUTO
125
BUY
2520-2540
2480
2580-2620
-5000.00
SL TRG
2617.90 / 2475.50
EXIDE IND
2000
BUY
155-158
152
162-164
0.00
NEAR COST
158.70 / 160.30
JINDAL STEEL
1000
BUY
162-165
157
172-178
0.00
NEAR COST
162.30 / 163.80
NET PROFIT
32000.00