Canara Bank Hits Intraday Low Amid Price Pressure on 1 Feb 2026

Intraday Performance and Price Movements

On the trading day, Canara Bank’s stock recorded a significant intraday low of Rs 138.05, marking a 6.34% drop from its previous close. The day ended with a 5.33% decline, a notable underperformance compared to the Public Sector Bank sector, which itself fell by 5.39%. Despite this, Canara Bank marginally outperformed its sector by 0.71% in relative terms. The stock’s fall extended a three-day losing streak, accumulating a 10.39% loss over this period.

Examining the moving averages, the stock price remains above its 100-day and 200-day moving averages, indicating some longer-term support. However, it is trading below its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term downward momentum. This technical positioning suggests that while the stock has some underlying resilience, immediate pressures are weighing on its price action.

Market Context and Broader Indices

The decline in Canara Bank’s share price coincided with a sharp reversal in the broader market. The Sensex opened 119.19 points higher but reversed sharply to close at 80,513.17, down 1,875.80 points or 2.14%. This steep fall reflects a widespread risk-off sentiment among investors. The Sensex is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating a mixed technical picture for the benchmark index.

In comparison, Canara Bank’s one-day performance of -5.22% was more pronounced than the Sensex’s -2.17%, highlighting the stock’s vulnerability amid the market downturn. Over the past week, the stock has declined 7.94%, significantly more than the Sensex’s 1.29% fall. The one-month performance also shows a sharper decline of 9.29% versus the Sensex’s 4.95% drop, underscoring the stock’s recent relative weakness.

Longer-Term Performance and Market Capitalisation

Despite the recent weakness, Canara Bank’s longer-term performance remains robust. The stock has delivered a 53.26% return over the past year, significantly outperforming the Sensex’s 4.85% gain. Over three years, the stock has surged 139.09%, compared to the Sensex’s 35.27%. The five-year and ten-year returns are even more impressive, at 429.17% and 270.17% respectively, well ahead of the benchmark’s 73.89% and 223.61% gains.

These figures reflect the stock’s strong historical growth trajectory, although the recent price action indicates a period of consolidation or correction. The company’s current Mojo Score stands at 68.0 with a Mojo Grade of Hold, downgraded from Buy on 28 Jan 2026. The Market Cap Grade is 2, indicating a mid-cap status within the public sector banking space.

Sectoral and Sentiment Pressures

The Public Sector Bank sector has been under pressure, with a 5.39% decline on the day, mirroring the broader market’s risk aversion. Canara Bank’s relative outperformance within this context suggests some resilience, but the stock remains vulnerable to the prevailing negative sentiment. The ongoing three-day decline and the breach of short-term moving averages point to immediate selling pressure.

Investor sentiment appears cautious, influenced by the sharp reversal in the Sensex and the sector’s overall weakness. The stock’s inability to hold above its short-term moving averages may be contributing to technical selling. The broader market’s retreat below key technical levels adds to the cautious tone, limiting upside momentum for Canara Bank in the near term.

Summary of Price Action and Market Dynamics

In summary, Canara Bank’s stock experienced notable intraday weakness on 1 Feb 2026, touching a low of Rs 138.05 and closing down 5.33%. This decline occurred amid a sharp market correction, with the Sensex falling over 2% and the Public Sector Bank sector also under pressure. The stock’s technical indicators reflect short-term weakness, trading below key moving averages despite longer-term support levels.

The three-day consecutive decline and underperformance relative to the Sensex highlight the immediate pressures facing the stock. Market sentiment remains cautious, influenced by the broader index reversal and sectoral weakness. While Canara Bank’s historical performance remains strong, the current environment is characterised by subdued buying interest and technical selling.

Investors monitoring the stock should note the ongoing price pressure and the importance of key technical levels in the near term. The stock’s Mojo Grade of Hold reflects this cautious stance, following a recent downgrade from Buy. Overall, Canara Bank’s share price action on this trading day underscores the challenges posed by a volatile market backdrop and sector-specific headwinds.

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