Karnataka Bank Technical Analysis

Karnataka Bank has recently been in the lime light as the whole of the PSU bank sector has been witnessing huge volume support pushing the prices upwards significantly. Stocks in this space are up 100% in less than 3 months!

If we see Karnataka Bank’s chart, we can see that the stock has been sideways to down-trending for a very long period of time and has due to the recent price activity, made a rounding bottom pattern and is currently consolidating very close to the neckline of the pattern. If the said neckline gets broken on a weekly time frame with good support from the volumes, we can see a strong up-trend in this stock.

Federal Bank Technical Analysis

If we see Federal Bank’s chart, we can see that the stock had been up-trending till July 2017 and since then has gone into a long down trend and had fallen over 70%. After the 2020 crash, the stock price started recovering and the stock has made a rounding bottom pattern and has even broken and retested the neckline of the pattern and has bounced off the neckline, indicating strength.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

To know more about these two stocks, please checkout the video below: