Canara Bank stocks were trading in the red on the NSE around 12:30 pm on Wednesday. The stocks were trading at Rs 151.60 around this time, down by almost 2.6 per cent from the last closing price on Tuesday. While, the share has been trading negatively, there is strong action in stocks with over 2 cr shares trading on the NSE around this time.

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In a big development, billionaire investor Rakesh Jhunjhunwala picked up a minority stake in Canara Bank via the (QIP) route. As per the shareholding statement of Canara Bank filed to exchanges on Tuesday, the Big Bull has picked up at least 2,88,50,000 shares or 1.59 percent in the public sector lender. 

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On Wednesday, the traded value was around 315.22 cr while the total market cap was around 27,502.21 cr.

Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that the positive impact of share purchase in a block deal does not appear to be showing as of now… at least that has not reflected in the price movement, he reiterated.

His view was entirely on the basis of technical analysis of the stock.

He was however bullish on this stock an said that the structure on technical charts still strong, notwithstanding the current price correction.

He sees a strong support at Rs 142, which is also its 200-day moving average (DMA). His recommendation is to BUY ON DIPS.

He puts a short term target price of Rs 160-Rs 165. He said that he expected a big breakout once the levels of Rs 165 is crossed which is an important resistance level. The next target price is Rs 180 once this level is breached.

Currently the Canara Bank stock is stuck in a range, this technical analyst said.

It is among the top stocks that is on the radar of Jain apart from State Bank of India shares (SBI shares) and Bank of Baroda shares (BoB shares).

 The 52-week high on this stock is Rs 174.60 while the 52-week low is at Rs 82.25.