Gaurav Bissa of LKP Securities told CNBC-TV18, "Canara Bank has seen a vertical drop but it is finding support at Rs 298-290 levels. Relative strength index (RSI) is in a significantly oversold zone and it is about to give an uptrend. So, this stock is poised for an uptake. Even a small uptake in the RSI can lead to lows of Rs 305-310. So, it is very well positioned. Bank Nifty is also showing signs of some amount of recovery and if that happens, today also, public sector (PSU) banks are showing some signs of stability. It is not potential upside. They are showing sign of stability. So, I feel one can buy Canara Bank for a target of Rs 305 keeping the stoploss at Rs 289."
"Exide Industries is another stock to witness; significant correction. It has been in a downtrend for large part and Rs 138-140 is the long-term support levels. It is a very crucial level. Stock has bounced from these levels with incremental volumes. The volumes have seen an improvement. It is trading just above the short-term averages. So, if these levels are held, it can jump to levels of Rs 149 even more. One can thus buy this stock with a stoploss of Rs 139," he said.
Disclosure: Analyst doesn't hold the above stock but it is possible that he may recommended them to his clients at LKP.
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