Price Movement and Market Context
On 20 February 2026, Canara Bank’s stock closed at ₹149.40, down 1.68% from the previous close of ₹151.95. The intraday range was relatively narrow, with a low of ₹148.75 and a high of ₹152.65. The stock remains comfortably above its 52-week low of ₹78.58 but below its 52-week high of ₹160.80, indicating a consolidation phase after a strong rally over the past year.
Comparatively, Canara Bank has outperformed the Sensex significantly over longer time horizons. The stock’s one-year return stands at an impressive 74.53%, dwarfing the Sensex’s 8.64% gain. Over five and ten years, the stock has delivered returns of 367.31% and 347.41% respectively, compared to the Sensex’s 62.11% and 247.96%. However, in the short term, the stock has shown some volatility, with a one-month return of -4.78% versus the Sensex’s -0.90%, and a year-to-date return of -3.55% against the Sensex’s -3.19%.
Technical Trend Shift: From Bullish to Mildly Bullish
MarketsMOJO’s technical assessment indicates a shift in Canara Bank’s trend from bullish to mildly bullish as of 3 February 2026. This subtle downgrade reflects a moderation in upward momentum, suggesting that while the stock is not in a downtrend, the pace of gains has slowed and caution is warranted.
The daily moving averages support this mildly bullish stance. The stock price remains above key short-term moving averages, signalling underlying strength, but the narrowing gap between price and averages hints at a potential pause or minor correction.
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed signal for Canara Bank. On a weekly basis, the MACD is mildly bearish, indicating some short-term weakening in momentum. This suggests that the recent price pullback may continue or consolidate before any renewed upward move.
Conversely, the monthly MACD remains bullish, signalling that the longer-term trend is intact and positive. This divergence between weekly and monthly MACD readings highlights the importance of timeframe in technical analysis and suggests that while short-term caution is advised, the medium to long-term outlook remains constructive.
RSI and Bollinger Bands Analysis
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, providing no immediate impetus for a strong directional move based on momentum extremes.
Bollinger Bands, however, are bullish on both weekly and monthly timeframes. The stock price is trading near the upper band on the monthly chart, which often suggests sustained buying interest and potential for further upside. On the weekly chart, the bullish Bollinger Bands reinforce the notion of a positive price environment despite short-term fluctuations.
Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator is mildly bearish on the weekly chart but bullish on the monthly chart, mirroring the MACD’s mixed signals. This again points to short-term caution amid a longer-term positive trend.
Dow Theory assessments are mildly bullish on both weekly and monthly charts, supporting the view that the stock is in a general uptrend with some short-term consolidation.
On-Balance Volume (OBV) shows no clear trend on the weekly chart but is bullish on the monthly chart, indicating that volume flows support the longer-term price appreciation.
Market Capitalisation and Mojo Score Upgrade
Canara Bank’s Market Cap Grade remains at 1, reflecting its status as a large-cap entity within the public sector banking space. The MarketsMOJO Mojo Score has improved to 71.0, resulting in an upgrade from a previous Hold rating to a Buy as of 3 February 2026. This upgrade reflects improved technical and fundamental assessments, signalling increased investor confidence.
Despite the recent price dip, the overall technical and fundamental backdrop supports a cautiously optimistic stance for investors considering exposure to Canara Bank.
Curious about Canara Bank from Public Sector Bank? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
- - Decision-ready insights
Investor Takeaway and Outlook
Investors should note that Canara Bank’s technical indicators present a nuanced picture. The mildly bullish trend suggests that while the stock is not in a strong uptrend, it retains positive momentum with some short-term volatility. The mixed signals from MACD and KST on weekly versus monthly charts imply that traders should be cautious about short-term pullbacks but remain confident in the stock’s longer-term prospects.
The neutral RSI readings and bullish Bollinger Bands further support a scenario of consolidation with potential for renewed upward movement. The upgrade in Mojo Grade to Buy and a Mojo Score of 71.0 reinforce the view that Canara Bank is favourably positioned relative to its peers in the public sector banking industry.
Given the stock’s strong historical returns—outperforming the Sensex by a wide margin over one, three, five, and ten-year periods—long-term investors may find the current mild consolidation phase an opportunity to accumulate shares at reasonable levels.
However, short-term traders should monitor weekly MACD and KST signals closely for signs of further weakening momentum or a potential reversal. Maintaining a balanced approach that considers both technical and fundamental factors will be key to navigating Canara Bank’s evolving price dynamics.
Summary
In summary, Canara Bank’s technical momentum has shifted from bullish to mildly bullish, reflecting a moderation in price gains amid mixed indicator signals. While weekly MACD and KST suggest short-term caution, monthly indicators remain bullish, supporting a positive medium-term outlook. The stock’s strong historical performance and recent Mojo Grade upgrade to Buy provide additional confidence for investors. Careful monitoring of momentum indicators and price action will be essential to capitalise on potential opportunities while managing risk.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
