J&KBANK - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.6

📊 J&KBANK shows moderate potential for swing trading. The RSI at 38.6 suggests the stock is approaching oversold territory, which may trigger a rebound. However, the negative MACD (-1.57) and declining quarterly profit variation highlight caution. The stock is trading below its 50 DMA (104 ₹), indicating short-term weakness. The optimal entry price would be near 95–97 ₹, close to support levels. If already holding, consider exiting around 105–108 ₹, where resistance from DMA levels may cap upside.

✅ Positive

• 📈 EPS of 19.0 ₹ supports earnings strength.
• 💹 ROE of 15.7% reflects strong shareholder returns.
• 📊 Very low P/E of 5.17 compared to industry PE of 14.7, suggesting undervaluation.
• 💸 Dividend yield of 2.15% provides attractive shareholder return.
• 📈 PAT improved slightly from 485 Cr. to 494 Cr. QoQ.

⚠️ Limitation

• 📉 ROCE of 6.14% reflects weak efficiency compared to peers.
• 📊 Debt-to-equity ratio of 10.2 indicates very high leverage risk.
• 📉 Current price below DMA 50 and DMA 200 shows technical weakness.
• 📊 Trading volume (15.5 lakh) is below weekly average, showing reduced participation.

🚨 Company Negative News

• 📉 Quarterly profit variation at -10.3% highlights declining profitability trend.
• 📊 FII holdings decreased by 0.16% and DII holdings decreased by 0.11%, showing reduced institutional confidence.

🌟 Company Positive News

• 📈 PAT growth QoQ shows operational improvement despite weak margins.
• 💹 52-week index gain of 46.8% highlights strong momentum in the past year.

🏭 Industry

• 📊 Industry PE at 14.7 suggests sector is moderately valued compared to J&KBANK’s lower valuation.
• 🌍 Banking sector benefits from rising credit demand and government-led financial inclusion initiatives.

📌 Conclusion

J&KBANK presents a cautious swing trade opportunity. Entry near 95–97 ₹ may provide a rebound, while exit around 105–108 ₹ is advisable if already holding. Strong valuation and dividend yield are positives, but high leverage and weak efficiency metrics limit upside. Traders should apply strict stop-loss discipline.

I can also break down short-term support and resistance zones visually on a chart to confirm these entry and exit levels if you'd like.