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AUBANK - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.5

Stock Code AUBANK Market Cap 76,030 Cr. Current Price 1,016 ₹ High / Low 1,080 ₹
Stock P/E 28.8 Book Value 264 ₹ Dividend Yield 0.10 % ROCE 7.66 %
ROE 14.3 % Face Value 10.0 ₹ DMA 50 970 ₹ DMA 200 891 ₹
Chg in FII Hold 0.82 % Chg in DII Hold 0.03 % PAT Qtr 832 Cr. PAT Prev Qtr 668 Cr.
RSI 57.9 MACD 28.0 Volume 19,55,155 Avg Vol 1Wk 28,60,372
Low price 655 ₹ High price 1,080 ₹ PEG Ratio 1.27 Debt to equity 8.44
52w Index 85.0 % Qtr Profit Var 65.2 % EPS 35.3 ₹ Industry PE 22.4

📈 Chart Patterns & Trend: AUBANK is trading above both 50 DMA (₹970) and 200 DMA (₹891), confirming a strong uptrend. RSI at 57.9 indicates healthy bullish momentum. MACD at 28.0 shows positive divergence, supporting continuation. Bollinger Bands suggest moderate volatility expansion. Price action remains near recent highs (₹1,080), reflecting strength.

🔑 Momentum Signals: RSI above 55 signals strong buying interest. MACD positive supports bullish bias. Volume (19.5L) is below average (28.6L), showing reduced participation, which may limit breakout strength. Trendlines highlight support near ₹980–₹1,000 and resistance near ₹1,070–₹1,080.

🎯 Entry Zone: ₹980 – ₹1,000 (support levels)

💰 Exit Zone: ₹1,070 – ₹1,080 (resistance levels)

📊 Status: Trending upward; consolidation possible near resistance but overall bullish bias intact.

Positive

  • Strong quarterly PAT growth (₹832 Cr vs ₹668 Cr, +65.2%)
  • EPS at ₹35.3 reflects consistent profitability
  • ROE at 14.3% highlights efficiency
  • Stock trading above both 50 DMA and 200 DMA
  • FII holdings increased (+0.82%), showing foreign investor confidence

Limitation

  • P/E (28.8) above industry average (22.4)
  • ROCE relatively weak at 7.66%
  • Dividend yield negligible at 0.10%
  • High debt-to-equity ratio (8.44) adds leverage risk
  • Volume below average, limiting breakout strength

Company Negative News

  • DII holdings only marginally increased (+0.03%)
  • High leverage levels may limit flexibility in adverse credit cycles

Company Positive News

  • Quarterly profit surged 65.2% YoY
  • Strong EPS base supports valuation
  • Stock trading near 52-week high (₹1,080)

Industry

  • Industry PE at 22.4 highlights sector stability
  • Banking sector growth supported by credit expansion and financial inclusion initiatives

Conclusion

✅ AUBANK is in a strong uptrend with bullish technical signals supported by fundamentals. While valuations are slightly above industry average and leverage is high, earnings growth and ROE provide resilience. Best suited for accumulation near ₹980–₹1,000 with profit-taking near ₹1,070–₹1,080. Long-term investors should be cautious of high debt levels but can hold for sustained growth.

Would you like me to add a comparative overlay against peers like Axis Bank, ICICI Bank, and HDFC Bank so you can see how AUBANK’s valuation and momentum stack up within the sector?

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