Karnataka Bank gives trendline breakout
The stock of Karnataka Bank has given downward sloping trendline breakout on Monday along with strong volumes. Additionally, the stock had formed a sizeable bullish candle on breakout day, which adds strength to the breakout.
The stock is trading above its short and long-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA, which suggests that the stock is in a short-long term uptrend. The 14-period day RSI is currently quoting at 64.92, which depicts positive momentum. The MACD is bullish as it's trading above the signal line. Additionally, the stock is trading above Ichimoku cloud, which suggests bullish bias.
In the near-term, the zone of Rs. 116.50- 118 is likely to act as major support as short-term moving averages, i.e. 13-day EMA and 20-day EMA is placed in that region. Failure to hold this support would lead to further correction up to the 100-day EMA, which is currently placed at Rs. 113.35. While on the upside, above Monday's high of Rs. 127.30 level, the stock is likely to extend its northward journey.
On Monday, the stock of Karnataka Bank closed at Rs. 125.05 per share, surging by 5.71 per cent. The stock opened at Rs. 119.10 per share and hit an intraday high of Rs. 127 and a low of Rs. 118.10 per share on BSE.