ICICIdirect.com is bullish on Karnataka Bank and has recommended buy rating on the stock with a target of Rs 129 in its June 7, 2011 research report.
"The share price of Karnataka Bank bottomed out near the | 107-105 range during May 2011 and then embarked upon ascending trend. Recently stock has run up to 117 during last week and then consolidating sideways. We have observed a bullish Flag breakout in today's price action which looks promising for short term price action. Flag pole measuring 11 points (117-106) projects pattern implication in the vicinity of 128-129 for the stock and throws good trading opportunity As per classic western technicals, pattern also resembles bullish `Cup and Handle' formation with similar price target."
"Volume pattern further validates price pattern as declines are on lower volumes while bullish price action is accompanied by heavy participation. 14 periods RSI oscillator is trending higher and has entered bullish zone above 60 more recently. Despite last week's dull movement RSI has remained in bullish territory indicating underlying strength. Buy the stock in the range of 119-117 for the target of 129, with stop loss of 112.5 on closing basis, says ICICIdirect.com research report.
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