Canara Bank can touch Rs 505-504, says Sukhani

Sudarshan Sukhani of s2analytics.com is of the view that Canara Bank can touch Rs 505-504.

Sukhani told CNBC-TV18, "In Canara Bank for the day we are looking at something around Rs 505-504. There is a breakout that happened on Friday and that breakout should see a lot of follow-through today. A little bit depend on the Nifty also because the markets get really choppy, this could be postponed but I don’t think this is going away." He further added, "PSU banks is a theme I have been building for the last one month and luckily that’s working out. It is just the beginning, traders should understand that they must focus on themes rather than individual random stocks and PSU banks as such is a complete theme. You want to be long in it in different stocks in this sector whenever possible." "For Hero Motocorp the intraday targets that is a couple of days targets are Rs 1950 but it is now bottoming out at a fairly higher level in that Rs 1800-1900 area and the next level is going to be Rs 2200. The charts are excellent, it has been an underperformer in the auto sector we understand that but it is likely to play catch up. It is not as if the underperformance will continue. Just as an example Ashok Leyland did the same thing and it eventually started playing catch up with a fairly decent base breakout." "Hero Motocorp is going to do that base breakout at the upper level of its trading range. Traders should again focus on this one, the idea is to buy stocks that have some steam ahead rather than to buy stocks that have already run up like private sector banks have run up, so ideally we don’t want to touch them." Disclosure: I have no holdings in the above stocks.