Sell Canara Bank Fut; target of Rs 410: IIFL

According to IIFL, traders can sell Canara Bank September Futures in the range of Rs 426-428 with stop loss of Rs 434 for target of Rs 410, in its September 05, 2011 research report.

"Canara Bank, after rallying sharply from the troughs of Rs400, stock has retreated from the falling resistance line which was placed at Rs427and the decline was supported with increase in volume activity. On the daily candlestick chart, a bearish engulfing line was formed which also indicate prices could be attempting another 52- week low in the near term. The daily RSI has also retreated from the bearish resistance zone of 40- 45 which earmarks weakness in the counter and also support argument for initiating short position in the near term. We recommend going short on Canara Bank September Futures in the range of Rs 426-428 with stop loss of Rs 434 for target of Rs 410. (Duration 7 days),

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