Karnataka Bank Nears Crucial Support Ahead Of Q1 Results; SEBI RA Deepak Pal Flags Make-Or-Break Zone

Karnataka Bank has been in a four-week losing streak, with technical indicators showing continued weakness despite approaching key support.

Karnataka Bank’s stock is hovering near a critical long-term support at the 200-week exponential moving average (EMA) around ₹172 as it heads into its first quarter (Q1) results on Tuesday.

SEBI-registered analyst Deepak Pal said that the stock has been in a downtrend since failing to hold above its 200 EMA in June and has now logged four straight weeks of decline.

Pal said the stock traded this week at ₹178.50, hitting a high of ₹181.00 and a low of ₹171.75, before closing at ₹172.15. 

He noted that while PSU banks have shown strong upward momentum in recent sessions, private sector banks such as Karnataka Bank have continued to fall.

Technical Breakdown

On the technical front, Pal identified immediate support at ₹171–₹170, which aligns with the 200 EMA and a horizontal support zone. 

If this breaks, the next major support is at ₹165. The first hurdle for the stock is around ₹180–₹183, the zone where it recently broke down, followed by ₹192–₹195, where the 50-day and 100-day EMAs meet. 

Technical indicators remain soft, with the Parabolic SAR still in bearish mode, the Moving Average Convergence Divergence (MACD) below its signal line and showing a negative histogram, and the relative strength index (RSI) near 37, pointing to weak momentum that is edging toward oversold levels.

The price is below the 50 and 100 EMA, currently testing the 200 EMA.

Pal described the stock as being in a “make-or-break” zone. Holding ₹170 could prompt a short-term bounce, while a breakdown may push prices towards ₹165–₹160. 

His short-term bias remains bearish until ₹183 is reclaimed. In the medium term, accumulation may be considered if the price stabilizes near ₹165–₹170.

For the long term, Pal sees strong support at around ₹150 and believes the stock has potential to reach ₹225–₹230 within three to six months. 

He added that any fresh short-term entry should only be considered if the stock holds above its 200-day EMA.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

Karnataka Bank’s stock has declined 18.8% so far in 2025.

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