Investors with a short-term perspective can buy the stock of Karnataka Bank at current levels. After a short term downtrend, the stock took support at ₹40 in late September 2020 and changed direction. Since then, the stock has been on a medium term uptrend. In late December, the stock took support at ₹48 and continued to trend upwards following a minor corrective decline. Short-term trend is also up for the stock. On Wednesday, the stock had conclusively breached a key barrier at ₹60 by gaining 3.7 per cent with extraordinary volume. It has gained 7.5 per cent so far this week. There has been an increase in volume over the past four trading sessions.
The stock trades well above the 21- and 50-day moving averages. Further, the daily and the weekly relative strength indices are hovering in the bullish zone backing the uptrend. Also, the daily and the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.
The short term outlook is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹65.5 and ₹67 in the short term. Traders with a short term view can buy the stock with a stop-loss at ₹61.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)