FEDERALBNK - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

FEDERALBNK is showing signs of short-term weakness but carries enough fundamental strength to merit a cautious swing trade strategy. Here's the breakdown

💡 Fundamental Snapshot

Valuation

P/E: 12.1 vs Industry PE: 12.6 → Fairly valued

PEG: 0.43 → Suggests modest growth potential

Profitability

EPS: ₹16.9, ROE: 12.9% → Decent earnings and shareholder returns

Quarterly PAT Growth: 12.4% → Steady improvement

Financial Stability

Debt-to-Equity: 9.15 → Very high, typical for banks, but requires monitoring

Dividend Yield: 0.58% → Minor income benefit

📉 Technical Overview

RSI: 38.7 → Near oversold zone, indicating possible price rebound

MACD: -0.26 → Mild bearish momentum, but could flatten

Price vs Moving Averages

Current: ₹205, DMA 50: ₹208, DMA 200: ₹197 → Just below short-term average, above long-term average

Volume Surge: Well above weekly average → Increased trading interest

52W Index at 68.8% → Plenty of headroom if sentiment turns positive

🎯 Swing Trade Setup

Fundamentals suggest resilience, but technical indicators are flashing caution.

Ideal candidate for reversal swing, especially if it holds above 200-DMA.

✅ Optimal Entry Zone

Buy Range: ₹198–₹203 Position near 200-DMA for safer entry with reduced downside risk.

🚪 Exit Strategy

Profit Booking Range: ₹216–₹220 Close to 52W high — exit if rally stalls or RSI nears 70.

Stop-Loss: ₹192 Below 200-DMA support to limit losses.

Want to dig deeper into banking sector momentum or compare FEDERALBNK with other mid-cap financials showing breakout signals? I can line that up.

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