This PSU bank stock jumps 8 per cent; know whats interest-ing here!

The volume recorded for the day is the highest single-day volume in the last two months.   

It is not a usual sight to see a backbencher topping the class but this actually took place on D-Street on Thursday. The backbencher sector is none other than Nifty PSU Bank, which turned out to be amongst the best-performing sector with no signs of stopping as it's going from strength to strength.   

Nifty PSU Bank index climbed a whopping 3.45 per cent on Thursday and with this, it has touched its important psychological mark of 2,600. It is trading above its 20 and 50-DMA. Moreover, barring Bank of India, all other stocks are trading in the positive territory. However, among all the stocks, there’s one stock that commands special attention and that is Canara Bank.   

The stock of Canara Bank has jumped 8 per cent and also, recorded its highest single-day gain since January 27. Furthermore, the volume recorded for the day is the highest single-day volume in the last two months.   

Technically, the stock is on the verge of breakout neckline of the double bottom pattern, which is placed around the levels of Rs 209-Rs 210. Sustaining above this level would result in a breakout of the neckline of the double bottom pattern. Interestingly, the 100-DMA also coincides around this level; hence, the zone of Rs 209-Rs 210 becomes quite crucial for the stock in the near term.   

The 14-period RSI at 65.5 on the daily chart shows bullish momentum. For the last four trading sessions, the MACD line is moving above the signal line and the histogram is suggesting a pickup in momentum. The stochastic oscillator is in an overbought zone but there is no sign of weakness yet.  

Keep an eye on the level of Rs 209-Rs 210 on the upside while on the downside, support is placed around Rs 194. Also, there is chatter on D-Street that Finance Minister may make some announcement today for PSU banks.