CENTRALBK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.4

📊 Chart Patterns: CENTRALBK is trading below both its 50 DMA (37.5 ₹) and 200 DMA (40.0 ₹), showing a bearish undertone. Current price (36.7 ₹) is near support levels, suggesting weak momentum but potential for rebound.

📈 Moving Averages: Price < 50 DMA < 200 DMA → bearish alignment. Trend remains negative until price crosses 37.5–40 ₹.

📉 RSI: At 36.3, RSI is in the oversold zone, indicating potential for short-term bounce.

📉 MACD: Negative (-0.61), confirming bearish crossover and weak momentum.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (53,43,288) is higher than 1-week average (45,01,021), showing increased activity but mostly on the downside.

📍 Support & Resistance:

- Strong support: 32.8 ₹

- Immediate resistance: 37.5 ₹ (50 DMA)

- Major resistance: 40.0 ₹ (200 DMA)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 34–36 ₹ near support. Exit zone: 37.5–39 ₹ if resistance is tested.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• Low P/E (7.58) compared to industry PE (7.89), showing fair valuation.
• Strong quarterly PAT growth (+32.9%) indicates improving profitability.
• PEG ratio of 0.14 suggests undervaluation relative to growth.
• Dividend yield of 1.09% provides income support.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• High debt-to-equity ratio (12.0) indicates leverage risk.
• ROCE (5.45%) is relatively weak compared to peers.

Company Negative News

• FII holdings declined (-0.09%), showing reduced foreign investor confidence.
• DII holdings also declined (-0.20%), indicating lack of domestic institutional support.

Company Positive News

• Quarterly PAT improved to 1,213 Cr. from 1,169 Cr., reflecting strong operational performance.
• EPS of 4.88 ₹ remains stable, supporting valuation comfort.

Industry

• Industry PE at 7.89 is close to CENTRALBK’s PE (7.58), showing fair valuation alignment.
• Banking sector remains cyclical, influenced by credit growth and interest rate environment.

Conclusion

⚖️ CENTRALBK is consolidating with bearish bias, trading below key moving averages but oversold on RSI. Entry near 34–36 ₹ could be considered for short-term gains, with exit around 37.5–39 ₹. A breakout above 40 ₹ (200 DMA) would confirm reversal. Fundamentals show improving profitability, but high leverage and weak ROCE remain concerns.