The short-term outlook for the Canara Bank stock is bullish. The stock surged over 9 per cent in the past week. The stock has been in a strong uptrend since October last. The rally now marks the end of the prolonged sideways consolidation that has been in place since February this year. Strong support is in the ₹170-160 region. Any intermediate pull-back in the stock price is likely to find fresh buying interest in the ₹170-160 region. The stock has room for a rise to ₹240-250 over the next couple of months.
Short-term investors can buy the stock at current levels and also accumulate on dips at ₹175 and ₹165. Keep the stop-loss at ₹157. Book profits at ₹245. Trail the stop-loss at ₹203 as soon as the stock moves up to ₹221. Move the stop-loss further up to ₹228 as soon as the stock touches ₹238. The bullish outlook will get negated only if the stock breaks below ₹160 decisively. Such a break, though less likely, can drag the stock down to ₹140-130.