FEDERALBNK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.6

📈 FEDERALBNK is in a strong uptrend with overbought momentum signals. Entry near 225–230 ₹ may offer a safer setup, while resistance lies around 240–245 ₹.

📈 Technical Analysis

• 📊 Chart Pattern: The stock is trending upward, forming higher highs and nearing its 52-week high of 239 ₹.
• 📈 Moving Averages: Price is well above both 50-DMA (210 ₹) and 200-DMA (200 ₹), confirming bullish momentum.
• 📈 RSI (82.1): Strongly overbought — signals potential short-term pullback or consolidation.
• 📈 MACD (9.96): Bullish crossover with strong momentum, supporting the uptrend.
• 📈 Bollinger Bands: Price near upper band, indicating bullish breakout with rising volatility.
• 📉 Volume Trend: Current volume (85.5L) is below 1-week average (113.9L), suggesting mild divergence in participation.

📍 Entry & Exit Zones

• ✅ Entry Zone: 225 ₹ – 230 ₹ (minor support and psychological level)
• 🚪 Exit Zone: 240 ₹ – 245 ₹ (resistance zone and 52-week high)

📊 Trend Status

• 📈 Current Trend: Trending upward
• ⚠️ Bias: Bullish but overbought — watch for consolidation or minor correction

✅ Positive

• Strong EPS (15.5 ₹) and low PEG (0.53) indicate undervaluation relative to growth.
• Price action supported by MACD and moving averages.
• DII holding increased by 1.54%, showing domestic institutional confidence.

⚠️ Limitation

• RSI above 80 — overbought zone, risk of short-term pullback.
• Volume below average — momentum may not be fully supported.
• ROCE (6.95%) is modest for a banking stock.

📉 Company Negative News

• FII holding dropped by 1.32%, indicating reduced foreign investor interest.
• Quarterly profit declined by 9.6% — may raise concerns about earnings consistency.

📈 Company Positive News

• Stock hit new 52-week high, reflecting strong investor sentiment.
• MACD and RSI confirm bullish momentum, supported by institutional buying.

🏭 Industry

• Banking sector remains stable with improving credit growth and digital adoption.
• FEDERALBNK trades slightly above industry PE (15.4 vs 14.5), indicating fair valuation.

🧾 Conclusion

• FEDERALBNK is in a strong uptrend with bullish technical indicators.
• Short-term traders may consider entries near 225 ₹ and exits near 245 ₹.
• Long-term investors should monitor RSI and volume for signs of reversal or consolidation.

Sources

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