CANARA BANK (CANBK) has been trading within a 3-month Bullish Megaphone pattern whose latest bottom was on the Merch 03 2025 Low. Since then, the pattern has started its new Bullish Leg, which has been confirmed by the break-out above its 1D EMA20 (Red trend-line) and the 1D RSI's above 60.
The previous three crosscover (5-20EMA) hit 10% above move. 1st 5EMA above was +10%, 2nd 20EMA restest Bullish was +16% more than 3rd Bullish move +23% , the stock achieves a +50% gain from bottom with in 3 months,
Right now stock near uper channel & Resistance zone (114-118)
Still, all candles closed above the previous Resistance 113 level. so we need to seek a confirmation of the bearish continuation and that is the Last big green candle low(109). If rejected then expect an instant drop up 105
level . If not, the last Resistance(118) is the top of the Channel . In both cases, our short-term Target is 105.
***The coming next quarter may prove to be tough for banking services and NBFCs.
The upcoming quarter may present challenges for banking and NBFCs due to factors like seasonal shifts in collections, elevated credit costs, and potential stress in microfinance and unsecured loan portfolios. While some sectors like auto loans may see seasonal improvements, others, especially microfinance, may face continued pressure.
Potential Challenges:
Seasonal Impact: Collections and recoveries are expected to improve due to seasonal factors, but credit costs are projected to remain high, particularly in the microfinance sector.
Microfinance Stress:Stress in the microfinance sector, a key concern for NBFCs, is expected to persist, potentially delaying full recovery.
Unsecured Loan Portfolio Stress: Stress in unsecured loan portfolios and credit card segments may also continue.
Regulatory Changes: Recent regulatory changes, like the Tamil Nadu ordinance, may impact the microfinance sector and potentially distort moral credit discipline.
Credit Growth Moderation:
The credit growth of NBFCs is expected to moderate in the coming year, indicating a potential slowdown.
The previous three crosscover (5-20EMA) hit 10% above move. 1st 5EMA above was +10%, 2nd 20EMA restest Bullish was +16% more than 3rd Bullish move +23% , the stock achieves a +50% gain from bottom with in 3 months,
Right now stock near uper channel & Resistance zone (114-118)
Still, all candles closed above the previous Resistance 113 level. so we need to seek a confirmation of the bearish continuation and that is the Last big green candle low(109). If rejected then expect an instant drop up 105
level . If not, the last Resistance(118) is the top of the Channel . In both cases, our short-term Target is 105.
***The coming next quarter may prove to be tough for banking services and NBFCs.
The upcoming quarter may present challenges for banking and NBFCs due to factors like seasonal shifts in collections, elevated credit costs, and potential stress in microfinance and unsecured loan portfolios. While some sectors like auto loans may see seasonal improvements, others, especially microfinance, may face continued pressure.
Potential Challenges:
Seasonal Impact: Collections and recoveries are expected to improve due to seasonal factors, but credit costs are projected to remain high, particularly in the microfinance sector.
Microfinance Stress:Stress in the microfinance sector, a key concern for NBFCs, is expected to persist, potentially delaying full recovery.
Unsecured Loan Portfolio Stress: Stress in unsecured loan portfolios and credit card segments may also continue.
Regulatory Changes: Recent regulatory changes, like the Tamil Nadu ordinance, may impact the microfinance sector and potentially distort moral credit discipline.
Credit Growth Moderation:
The credit growth of NBFCs is expected to moderate in the coming year, indicating a potential slowdown.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.