Traders need to watch the stock of Karnataka Bank closely. On Friday, it surged over 10 per cent to close decisively above its 200-day moving average, currently at ₹103.3. It had dropped from a high of ₹109.3 on Monday to test and close above the 200-DMA once again. It has to sustain above this level to keep the bullish view alive. If it bounces from the current levels, the chances of a rally to ₹120 will brighten. But if it falls below ₹103.3, the outlook will turn negative. It could then fall to ₹97.
FII limit - Another hurdle for Maruti
Shares of Maruti Suzuki will remain in focus on Tuesday, as the RBI said FIIs will require its approval to buy more shares in the auto maker. Foreign shareholding has reached the trigger limit of 22 per cent. The stock is under pressure on concerns over the proposed Gujarat project. Last month, Japan’s Suzuki Motor had said it will set up a car factory in Gujarat by 2017 that had led to investor concerns related to pricing and funding of expansions in the proposed contract manufacturing pact.
Stake sale to keep Elantas in focus
Elantas GmbH, the promoter of Elantas Beck India, has of fered to sell 2.69 crore shares or 3.39 per cent of the paid-up capital of the company through a separate window. The floor price for the offer-for-sale is ₹450. Promoters are diluting the stake to meet the minimum public shareholding norm of 75 per cent. Currently, Elantas GmbH holds 78.39 per cent stake in the arm, while 7,167 individual shareholders control 12.94 per cent. The stock on Monday closed at ₹547.05 on the BSE.