Equity Alert: Karnataka Bank up over 1% ahead of rights issue

[K.Karthik Raja]

Equity Alert: Karnataka Bank up over 1% ahead of rights issue
MUMBAI--10:55AM--Shares of Karnataka Bank were up over 1% at 188
rupees
ahead of its board meeting Jun 12 to consider rights issue of shares.
Dealers, however, maintained banking stocks would remain under
pressure
until inflationary concerns are over.
"Today's gains seen in Karnataka Bank shares could be a technical
bounce.
Also, there could be some expectations from the bank's proposed rights
issue,"
Ashok Jainani, head - research, Khandwala Securities, said.
Wednesday, in a notice to BSE, Karnataka Bank said the bank's
board of
directors would meet Jun 12 to consider issue of equity shares on
rights
basis and other means.
Technical analysts said the charts point towards a "clear
downtrend", with
support for the stock seen at 170 rupees and resistance at 195 rupees.