Karur Vysya: 100 DMA Support @ Rs 500

KARUR VYSYA Daily NSE Stock Price Technical Analysis

Unlike expected yesterday, the price fell heavily today, losing quite a bit in the 2nd half.  But, I feel that this is simply because of the overall market fall today and has nothing to do with Karur Vysya's potential to give returns.

Open: 523.05  Close:  502.85

Market Outlook:  

• I'm expecting the price to rise up again.  If it does, I'm looking at taking a long position on this one soon, especially if it rises above 520 with good trading volume and other indicators pointing upwards as well.

Technical Indicators:  

• There is unusually large negative activity on this stock inspite of the fact that there is no negative news about the company.  In fact, KV has recently won the 2nd best private sector bank award.  So this big fall today seems unwarranted.
• Today's fall looks like 1) Reaction to overall negative market and 2) A sudden short term hurry to liquidate positions by people who were worried when the support line at 520 was broken.
• The price finally found support at its 100 DMA near 500 and closed slightly above it.
• The stock price is flattening out in the oversold levels, pointing towards a possible rise again.
• Tomorrow should be able to tell us if we should indeed take a long position on KV at the CMP.  Wait for a day or two.  

 KARUR VYSYA Daily NSE Stock Price Technical Analysis