Comments
We recommend a buy in the stock of Karnataka Bank from a short-term horizon. It is seen from the charts of the stock that in February, it peaked at Rs 112. The stock was on a medium-term downtrend until it found support around Rs 72 in late May this year. Subsequently, it reversed direction triggered by positive divergence in daily relative strength index. Over the last two weeks, the stock has been on a short-term uptrend.
On Thursday, it jumped five per cent, conclusively penetrating its medium-term downtrendline and key resistance at Rs 82. We observe that there is an increase in volumes during advance sessions of the stock's current up move. The daily RSI is featuring in the bullish zone and weekly RSI is inching higher in the neutral region. The daily moving average convergence divergence indicator is moving upwards in line with the stock price and is likely to enter the positive territory strengthening the upward momentum. Our short-term forecast on the stock is bullish. We expect its on going up move to continue and touch our price target of Rs 89.5 or Rs 92 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 84.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.