Technical Picks to Keep an Eye On: Canara Bank and Zensar Technologies

Canara Bank and Zensar Technologies are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising structures and technical setups, including price volume contraction, and the potential to bounce back and breakout. Currently trading at Rs 118.60 and Rs 621.30 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a breakout scenario likely in the coming time.

Canara Bank

The daily chart of Canara Bank 

On the daily chart, Canara Bank is presently showing a promising picture; the stock price is consolidating around 50-day EMA. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the upper resistance as plotted on the chart, with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade-in Lupin might purchase the stock at the current price with a stop loss of Rs 108 on a closing basis and aim to capitalize above the 52-week high.

The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more after the breakout of the 52-week high. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 51.91. The ADX of 18 indicates the present state of price momentum, which is moving with low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 105. The minor upper resistance is 52-week high and if the stock closes above resistances consecutively, then it may consistently trade above current levels.

Canara Bank engages in the provision of commercial banking and financial services.

Zensar Technologies Ltd

The daily chart of Zensar Technologies Ltd

Zensar Technologies’ current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 621.30 and may start the uptrend from the current level if it manages to break the 52-week high level. The stock price is currently trading slightly above the 50-day EMA.

Those interested in possible trade-in Zensar Technologies could purchase the stock at the present price, setting a stop loss below the 50-day EMA at Rs 580, and aim for a target price higher than the level of 52-week high.

The stock is trading above its all-important moving averages, and it is expected to find support near Rs 514. The Relative Strength Index is trading near neutral levels at 53.48. This implies there may be potential for an increase in stock price strength. The ADX, now around 18, shows normal momentum and directional strength.

The level at Rs 514 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock sustains the level of 52-week high and trades above it.

Zensar Technologies Ltd. engages in the provision software development and allied services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.