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BANKINDIA - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.8

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

Technical Rating: 2.8

Stock Code BANKINDIA Market Cap 63,678 Cr. Current Price 140 ₹ High / Low 178 ₹
Stock P/E 6.28 Book Value 186 ₹ Dividend Yield 2.90 % ROCE 6.15 %
ROE 12.3 % Face Value 10.0 ₹ DMA 50 150 ₹ DMA 200 141 ₹
Chg in FII Hold 1.44 % Chg in DII Hold -1.22 % PAT Qtr 2,705 Cr. PAT Prev Qtr 2,555 Cr.
RSI 39.1 MACD -1.85 Volume 1,08,60,654 Avg Vol 1Wk 1,05,24,148
Low price 104 ₹ High price 178 ₹ PEG Ratio 0.16 Debt to equity 11.7
52w Index 48.2 % Qtr Profit Var 7.47 % EPS 22.3 ₹ Industry PE 7.99

📉 BANKINDIA is trading at ₹140, below both its 50 DMA (₹150) and 200 DMA (₹141), signaling weakness. RSI at 39.1 indicates bearish momentum, while MACD at -1.85 confirms negative divergence. Bollinger Bands show price consolidating near the lower band. Current volume (1,08,60,654) is slightly above the 1-week average (1,05,24,148), showing moderate participation despite weakness.

🔑 Short-term momentum signals: Support lies near ₹135–₹138, resistance around ₹148–₹152. Entry zone is closer to ₹136–₹138 if support holds. Exit zone should be considered near ₹148–₹152. The stock is in a consolidation phase with bearish bias.

✅ Positive

  • EPS of ₹22.3 provides strong earnings base.
  • ROE at 12.3% indicates solid profitability.
  • Dividend yield of 2.90% adds shareholder value.
  • Quarterly PAT improved (₹2,705 Cr vs ₹2,555 Cr).
  • PEG ratio of 0.16 highlights undervaluation relative to growth.
  • FII holdings increased (+1.44%), showing foreign investor confidence.

⚠️ Limitation

  • ROCE relatively weak at 6.15%.
  • Debt-to-equity ratio high at 11.7, typical for banks but adds leverage risk.
  • Price trading below both 50 DMA and 200 DMA, limiting upside momentum.
  • RSI below 40 signals weak momentum.
  • DII holdings decreased (-1.22%), showing domestic investor caution.

📉 Company Negative News

  • Decline in domestic institutional confidence.
  • High leverage compared to peers.

📊 Company Positive News

  • Quarterly profits improved.
  • Foreign institutional inflows support sentiment.
  • Attractive valuation with low PEG ratio.

🏭 Industry

  • Industry P/E at 7.99 highlights sector trading at similar multiples.
  • Banking sector remains resilient but faces valuation pressure.

📝 Conclusion

BANKINDIA is consolidating with weak momentum, trading below both 50 DMA and 200 DMA. Entry near ₹136–₹138 offers cautious opportunity, with exit around ₹148–₹152. Strong fundamentals and undervaluation support long-term potential, but high leverage and weak technical signals warrant strict stop-loss discipline.

Would you like me to extend this into a peer benchmarking overlay comparing BANKINDIA against other PSU banks like Bank of Baroda and Punjab National Bank for relative strength and valuation?

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