FEDERALBNK - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.3

📈 Analysis: FEDERALBNK is currently in a strong bullish phase, trading at its 52-week high of ₹238–₹239. The RSI at 82.7 indicates an overbought condition, suggesting caution for fresh entry. MACD is strongly positive, confirming momentum. The stock is well above its 50 DMA (₹212) and 200 DMA (₹201), reflecting a sustained uptrend. Fundamentally, it trades close to industry P/E, has a low PEG ratio (0.53), and shows solid ROE (13%). However, the high debt-to-equity ratio (8.75) and recent dip in quarterly profit (-9.6%) warrant close monitoring.

🎯 Optimal Entry Price: ₹215–₹220 (on pullback near 50 DMA)

🚪 Exit Strategy (if holding): Consider exiting near ₹240–₹245 (current resistance zone) or if RSI remains above 80 with declining volume.

✅ Positive

• 📈 Strong MACD (10.0) and price action above key DMAs
• 📊 Solid ROE (13%) and EPS (₹15.5) — profitability strength
• 📉 PEG ratio of 0.53 — undervalued relative to growth
• 📈 DII holding increased (+1.54%) — domestic institutional support

⚠️ Limitation

• 📉 RSI at 82.7 — overbought zone, risk of short-term correction
• 📉 High debt-to-equity ratio (8.75) — leverage risk
• 📉 Decline in FII holding (-1.32%) — foreign investor caution
• 📉 Quarterly profit dip (-9.6%) — earnings volatility

📰 Company Negative News

• No major negative news reported, but profit contraction and high leverage are concerns

🌟 Company Positive News

• Strong PAT of ₹955 Cr. and rising DII interest reflect confidence in core banking operations

🏭 Industry

• Industry P/E is 14.6 — FEDERALBNK trades slightly above, indicating fair valuation
• Banking sector remains robust with rising credit demand and improving asset quality

🧾 Conclusion

FEDERALBNK is a strong swing trade candidate with bullish momentum and solid fundamentals. Entry on pullback near 50 DMA offers a safer setup. Exit near resistance or on signs of RSI reversal is advised.

I can also track its RSI and MACD trajectory over the past 30 days to time your entry more precisely.