FEDERALBNK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | FEDERALBNK | Market Cap | 71,280 Cr. | Current Price | 289 ₹ | High / Low | 302 ₹ |
| Stock P/E | 17.3 | Book Value | 157 ₹ | Dividend Yield | 0.42 % | ROCE | 6.27 % |
| ROE | 11.4 % | Face Value | 2.00 ₹ | DMA 50 | 285 ₹ | DMA 200 | 258 ₹ |
| Chg in FII Hold | 1.11 % | Chg in DII Hold | -0.71 % | PAT Qtr | 1,259 Cr. | PAT Prev Qtr | 1,041 Cr. |
| RSI | 52.4 | MACD | 0.63 | Volume | 39,40,798 | Avg Vol 1Wk | 79,13,133 |
| Low price | 185 ₹ | High price | 302 ₹ | PEG Ratio | 1.57 | Debt to equity | 8.66 |
| 52w Index | 88.9 % | Qtr Profit Var | 22.2 % | EPS | 16.7 ₹ | Industry PE | 14.8 |
Chart & Trend Analysis:
FEDERALBNK is trading at ₹289, above both its 50 DMA (₹285) and 200 DMA (₹258), confirming bullish momentum. RSI at 52.4 indicates neutral strength, while MACD at 0.63 shows a mild positive crossover. Bollinger Bands are moderately wide, suggesting consolidation with potential breakout. Current volume (39.4L) is lower than the weekly average (79.1L), showing reduced participation.
Momentum Signals:
- RSI near 52 signals balanced momentum.
- MACD positive but shallow, indicating limited upside.
- Resistance zones: ₹295–300 (near-term), ₹302 (recent high).
- Support zones: ₹285 immediate, deeper support at ₹258 (200 DMA).
- Trend status: Consolidating with mild bullish bias; reversal possible if price sustains above ₹295.
Entry Zone: ₹285–289 (accumulation zone)
Exit Zone: ₹295–302 (profit booking zone)
Stop-Loss: Below ₹258
Positive
- Quarterly PAT improved to ₹1,259 Cr from ₹1,041 Cr (+22.2%).
- EPS at ₹16.7 supports valuation stability.
- FII holdings increased (+1.11%), showing foreign investor confidence.
- Price trading above both 50 DMA and 200 DMA confirms bullish trend.
Limitation
- ROCE at 6.27% is relatively weak compared to peers.
- High debt-to-equity ratio (8.66) adds leverage risk.
- DII holdings reduced (-0.71%), showing weaker domestic support.
- Volume participation below average, limiting momentum confirmation.
Company Negative News
- Decline in DII holdings (-0.71%).
- High leverage risk in volatile market conditions.
Company Positive News
- Quarterly PAT growth (+22.2%) highlights operational strength.
- FII support indicates foreign investor optimism.
- Strong 52-week performance (+88.9%).
Industry
- Industry PE at 14.8 is lower than FEDERALBNK’s P/E (17.3), suggesting moderate premium valuation.
- Banking sector supported by credit growth and stable demand for financial services.
Conclusion
FEDERALBNK is consolidating with mild bullish bias, trading above key moving averages. Entry near ₹285–289 offers a favorable setup, with exits around ₹295–302. Fundamentals remain steady with strong earnings and foreign institutional support, but leverage risk and weak ROCE require disciplined monitoring.
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