FEDERALBNK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | FEDERALBNK | Market Cap | 66,815 Cr. | Current Price | 271 ₹ | High / Low | 302 ₹ |
| Stock P/E | 17.2 | Book Value | 142 ₹ | Dividend Yield | 0.44 % | ROCE | 6.95 % |
| ROE | 13.0 % | Face Value | 2.00 ₹ | DMA 50 | 277 ₹ | DMA 200 | 244 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 1.39 % | PAT Qtr | 1,041 Cr. | PAT Prev Qtr | 955 Cr. |
| RSI | 42.8 | MACD | -4.98 | Volume | 72,01,224 | Avg Vol 1Wk | 98,49,538 |
| Low price | 181 ₹ | High price | 302 ₹ | PEG Ratio | 0.59 | Debt to equity | 8.75 |
| 52w Index | 74.8 % | Qtr Profit Var | 8.98 % | EPS | 15.8 ₹ | Industry PE | 14.8 |
📉 Chart & Trend: FEDERALBNK is trading at ₹271, below its 50 DMA (₹277) but above the 200 DMA (₹244). This indicates short-term weakness but long-term support. The stock is in a consolidation phase with mild bearish bias.
📊 Momentum Indicators:
- RSI at 42.8 shows weak momentum, leaning towards oversold territory.
- MACD at -4.98 confirms bearish crossover.
- Bollinger Bands: Price is near the lower band, suggesting limited downside but no strong reversal yet.
- Volume is below average (72,01,224 vs 98,49,538), showing reduced participation.
📈 Support & Resistance:
- Immediate support: ₹265–270 zone.
- Strong support: ₹244 (200 DMA) and ₹181 (52-week low).
- Resistance zones: ₹277 (50 DMA) and ₹302 (recent high).
- Optimal entry: ₹265–270 near support.
- Exit zone: ₹295–305 if rebound occurs.
🔎 Trend Status: The stock is consolidating, awaiting breakout above 50 DMA for trend continuation.
Positive
- EPS of ₹15.8 shows consistent earnings base.
- DII holding increased by +1.39%, reflecting strong domestic institutional support.
- PAT improved to ₹1,041 Cr from ₹955 Cr, showing growth momentum.
- PEG ratio of 0.59 suggests attractive valuation relative to growth.
Limitation
- Price below 50 DMA signals short-term weakness.
- ROCE (6.95%) and ROE (13.0%) are moderate compared to peers.
- Debt-to-equity ratio of 8.75 is high, reflecting leveraged balance sheet typical of banks.
Company Negative News
- FII holding decreased by -0.60%, showing reduced foreign investor confidence.
- Quarter profit variation (+8.98%) is modest compared to sector leaders.
Company Positive News
- DII holding increased by +1.39%, reflecting strong domestic institutional confidence.
- PAT growth from ₹955 Cr to ₹1,041 Cr highlights steady operational improvement.
Industry
- Banking sector is cyclical, influenced by credit growth, interest rate cycles, and asset quality trends.
- Industry PE at 14.8 is slightly lower than FEDERALBNK’s PE (17.2), suggesting fair valuation with mild premium.
Conclusion
📌 FEDERALBNK is consolidating near support levels with mild bearish bias. Entry is favorable around ₹265–270 with stop-loss below ₹260. Short-term rebound may target ₹295–305, but sustained breakout requires volume confirmation. Fundamentally steady with improving profits and strong DII support, making it attractive for long-term investors despite short-term technical weakness.
Would you like me to extend this into a peer benchmarking overlay against other private banks like ICICI Bank, Axis Bank, and Kotak Mahindra Bank to highlight relative strength and sector rotation opportunities?