I hold shares of Karnataka Bank. My buy price is ₹86. Please let me know the outlook for this stock.

Ramesh Bhat, Mangalore 

Karnataka Bank (₹138.05): The stock had spiked to ₹143 on Friday before closing the week at ₹138. The upmove seems to have gained momentum. But there is an immediate resistance at ₹148 which will need a close watch. The rise last week has been very sharp. So, the chances of a near-term correction from ₹148 cannot be ruled out. It is now important for you to protect your profit. So, keep a stop-loss at ₹117 and hold the stock. We can expect the corrective fall to be limited to ₹120. Indicators on the charts also suggests that the downside could be limited.

The 100-Week Moving Average (MA) is on the verge of crossing over the 200-Week MA. This is a positive signal. A sideways consolidation between ₹120 and ₹148 for a few weeks cannot be ruled out. From a long-term perspective, Karnataka Bank has the potential to breach ₹148 and rally to ₹185 in the second or third quarter next year. Move your stop-loss up to ₹145 as soon as the stock rallies to ₹155. Revise the stop-loss further up to ₹160 when the stock touches ₹170. Book profits at ₹180.

What is the outlook for the stock of Rail Vikas Nigam Ltd? Is it worth buying this stock at current levels for a time-frame of six months?

Apurba Pradhan, Kolkata

Rail Vikas Nigam (₹46): Since this stock was listed in April 2019, it has very limited data available to do a proper technical analysis. However, we have tried to do some analysis with this limited data available. On the charts, the outlook seems bullish for Rail Vikas Nigam for the next three-six months. Indicators on the charts are also giving out positive signal. The 100-Day Moving Average is on the verge of crossing over the 200-Day Moving Average.

This is a bullish signal indicating that the downside could be limited. The upmove that had begun in late-August this year has gained momentum over the last couple of weeks. The stock has potential to rise to ₹52 in the coming months. Intermediate resistance is at ₹48. A corrective fall from ₹48 to ₹43-₹42 cannot be ruled out. Considering the risk-reward ratio, we suggest you wait for dips. Buy the stock of Rail Vikas Nigam at ₹43. Accumulate at ₹40. Keep the stop-loss at ₹37. Move the stop-loss up to ₹47 when the stock touches ₹49 on the upside. Exit the stock at ₹51.

I have bought shares of Cosmo First at an average cost of ₹960. What is the technical outlook? Can I continue to hold this stock, or should I sell it?

Shankar Mayuram

Cosmo First (₹771.55): The stock has been in a strong downtrend since April this year. This downtrend is very well intact. There is a strong resistance at ₹822 and then in the ₹880-890 region. Any intermediate bounce can be short-lived and capped either at ₹822 itself or at ₹880-890. Next support is available at ₹622 – the 61.8 per cent Fibonacci retracement level and around ₹600 – a trendline support.

So, there is more room for the stock of Cosmo First to fall from current levels to test ₹622 and ₹600 on the downside. To confirm a trend reversal, a strong rise past ₹900-930 resistance region is necessarily needed. But that looks unlikely at the moment. So, you have to exit this stock at current levels with a loss.