FEDERALBNK - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.3

📊 Technical & Momentum Analysis

Neutral Trend: Price is hovering around 50 DMA (₹199) and 200 DMA (₹196), indicating indecision.

MACD Negative: At −0.55, MACD suggests weakening momentum—no clear bullish crossover.

RSI Mid-Zone: 55.5 is neutral, offering no strong swing signal.

Volume Spike: Current volume (65.8L) is significantly above 1-week average (46L), hinting at short-term interest.

📈 Fundamental Snapshot

Valuation Attractive: P/E of 12.5 vs industry average of 12.6 and PEG of 0.43 suggest undervaluation with growth potential.

Mixed Profit Trend: PAT dropped from ₹1,030 Cr to ₹862 Cr (−14.6%), but still strong absolute earnings.

ROE Solid, ROCE Weak: ROE at 13% is decent, but ROCE at 6.95% is low for swing efficiency.

High Leverage: Debt-to-equity of 9.20 is typical for banks but adds systemic risk.

Institutional Sentiment: FII increased (+0.58%) while DII reduced (−0.90%)—mixed stance.

🎯 Trade Strategy

🔹 Optimal Entry Price

₹190–₹193: Near recent support and below 200 DMA. Wait for MACD to turn positive and RSI to hold above 50.

🔹 Exit Strategy (If Already Holding)

₹215–₹220: Near 52-week high and resistance zone. Exit if RSI crosses 70 or MACD flattens.

Trailing Stop: ₹192 to protect downside.

🧠 Summary

FEDERALBNK offers a value-based swing setup with strong earnings and low PEG, but technicals are currently neutral. Best suited for cautious entries near support with confirmation. Exit near resistance unless volume and MACD show breakout strength.

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