FEDERALBNK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.3

📊 Chart Patterns & Trend: FEDERALBNK is trading at its 52-week high (268 ₹) with strong bullish momentum. Support lies around 260–263 ₹, while resistance is seen near 270–275 ₹. The stock is in a trending phase with breakout signals.

📈 Moving Averages: Current price (267 ₹) is well above both 50 DMA (243 ₹) and 200 DMA (215 ₹), confirming strong uptrend.

📉 RSI: At 73.4, RSI indicates overbought conditions, suggesting caution for fresh entries.

📈 MACD: Positive (6.84) reflects strong bullish momentum, supporting the breakout trend.

📊 Bollinger Bands: Price is near the upper band, signaling strength but also potential short-term pullback.

📊 Volume Trends: Current volume (80.3 lakh) is above the 1-week average (72.8 lakh), showing strong participation and accumulation.

🎯 Entry Zone: 260–263 ₹ (near support and pullback levels)

🎯 Exit Zone: 270–275 ₹ (near resistance and upper band)

Positive

• EPS at 15.5 ₹ reflects strong earnings capability.
• DII holdings increased by 1.54%, showing domestic institutional confidence.
• Quarterly PAT growth from 862 Cr. to 955 Cr. highlights earnings strength.
• PEG ratio at 0.60 indicates attractive valuation relative to growth.

Limitation

• High debt-to-equity ratio (8.75) raises leverage concerns.
• ROCE at 6.95% is modest compared to peers.
• RSI above 70 suggests overbought conditions, limiting immediate upside.

Company Negative News

• FII holdings decreased by 1.32%, showing reduced foreign investor confidence.
• Quarterly profit variation at -9.60% indicates margin pressure.

Company Positive News

• Strong PAT growth and EPS performance highlight resilience.
• DII inflows reflect strong domestic support.
• Stock trading at 52-week high shows strong investor sentiment.

Industry

• Industry P/E at 14.7 indicates sector is moderately valued compared to FEDERALBNK’s P/E of 17.3.
• Banking sector demand expected to remain strong with credit growth and stable interest rate environment.

Conclusion

⚖️ FEDERALBNK is in a strong uptrend, trading at its 52-week high with bullish signals. Entry near 260–263 ₹ offers favorable risk-reward, while exits around 270–275 ₹ are optimal. Overbought RSI suggests caution for aggressive buying, but long-term trend remains positive with strong institutional support.