Sizzling Stocks :: Business Line

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Karnataka Bank (Rs 116.9)

Karnataka Bank nosedived 15.5 per cent with extraordinary volume on Friday, breaking through key support at Rs 136 and Rs 125. Moreover, this fall has decisively breached its moving average compression (21, 50 and 200-day moving averages) at Rs 140. The stock has fallen 16.4 per cent over the week and appears to have resumed its intermediate-term downtrend that has been in place from its December 2012 peak of Rs 198. The daily indicators are featuring in the bearish zone and weekly indicators have entered this zone. The stock is likely to decline further and test its key support zone between Rs 100 and Rs 104 in the short-term. Downward breach of this support band will pave way for a medium term decline to Rs 90 or even to Rs 80 level.

Immediate resistances for the stock are pegged at Rs 125 and then at Rs 136. Only an emphatic rally above Rs 155 will alter the stock’s intermediate-term downtrend and take it higher to Rs 185 levels.

Jindal Steel & Power (Rs 204.2)

The week before, the Jindal Steel & Power stock tumbled 13 per cent as the Central Bureau of Investigation filed a first information report against the Jindal Group in the coal scam case. The stock extended its fall last week by falling 15.7 per cent, taking it to a four-year low. Since encountering key resistance at Rs 750 in October 2010, the stock has been on a long-term downtrend. Medium and short-term trends are also down for the stock. Both daily as well as weekly indicators are featuring in the bearish zone. However, the stock is hovering just above its significant long-term support band between Rs 180 and Rs 200. An upward reversal from this zone can take the stock northwards to Rs 245 in the short-term. Next important resistance is at Rs 300. On the other hand, decline below the above mentioned support band will pull the stock down to Rs 155 in the medium-term.