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INDIANB - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 02 Feb 26, 09:51 am

Technical Rating: 3.8

Stock Code INDIANB Market Cap 1,13,613 Cr. Current Price 843 ₹ High / Low 923 ₹
Stock P/E 9.46 Book Value 581 ₹ Dividend Yield 1.93 % ROCE 6.38 %
ROE 17.1 % Face Value 10.0 ₹ DMA 50 837 ₹ DMA 200 736 ₹
Chg in FII Hold 0.96 % Chg in DII Hold -0.80 % PAT Qtr 3,061 Cr. PAT Prev Qtr 3,018 Cr.
RSI 47.5 MACD 17.2 Volume 20,98,269 Avg Vol 1Wk 18,60,541
Low price 478 ₹ High price 923 ₹ PEG Ratio 0.23 Debt to equity 10.7
52w Index 82.0 % Qtr Profit Var 7.33 % EPS 89.2 ₹ Industry PE 7.64

📊 Chart Patterns & Trend: Indian Bank is consolidating near the 843 ₹ zone. Price is above both the 50 DMA (837 ₹) and 200 DMA (736 ₹), indicating medium-term strength but short-term indecision. Support is visible near 820–830 ₹, while resistance lies around 880–900 ₹.

📈 Moving Averages: Price trading above both 50 DMA and 200 DMA shows bullish bias. Sustained move above 860–870 ₹ would confirm momentum continuation.

📉 RSI: At 47.5, RSI is neutral, suggesting balanced buying and selling pressure.

📈 MACD: Positive (17.2), showing bullish crossover and short-term upward bias.

📊 Bollinger Bands: Price is near the mid-band, reflecting consolidation. Breakout above 870–880 ₹ could trigger momentum toward 900 ₹.

📊 Volume Trends: Current volume (20.9 lakh) is higher than average weekly volume (18.6 lakh), showing active participation and accumulation interest.

🎯 Entry Zone: 830–845 ₹ (support zone).

🎯 Exit Zone: 880–900 ₹ (resistance zone).

🔑 Stop Loss: 820 ₹ (below support).


Positive

  • ROE at 17.1% indicates strong profitability.
  • EPS at 89.2 ₹ supports valuation strength.
  • Dividend yield of 1.93% adds income stability.
  • Price trading above both 50 DMA and 200 DMA supports medium-term strength.
  • Quarterly PAT improved from 3,018 Cr. to 3,061 Cr. (7.33% growth).

Limitation

  • ROCE at 6.38% is modest compared to peers.
  • Debt-to-equity ratio at 10.7 highlights high leverage typical of banks.
  • Stock P/E at 9.46 is slightly higher than industry PE (7.64), suggesting limited valuation comfort.

Company Negative News

  • DII holdings decreased (-0.80%), showing reduced domestic institutional confidence.
  • High leverage could limit flexibility in adverse market conditions.

Company Positive News

  • FII holdings increased (+0.96%), showing foreign investor confidence.
  • Quarterly PAT growth supports earnings momentum.
  • Strong 52-week performance with 82% index gain.

Industry

  • Industry PE at 7.64 vs. stock PE at 9.46 highlights slight premium valuation.
  • Banking sector supported by credit growth, government reforms, and digital adoption.

Conclusion

⚖️ Indian Bank is in a consolidation phase with bullish signals (MACD positive, price above DMAs). Medium-term outlook remains supported by strong fundamentals, EPS, and FII inflows. Entry near 830–845 ₹ offers margin of safety, while breakout above 870 ₹ could trigger momentum toward 900 ₹. Risk management is essential due to modest ROCE and high leverage.

Would you like me to extend this into a peer benchmarking overlay with other PSU banks (like SBI, PNB, and Bank of Baroda) to highlight relative strength and sector rotation opportunities?

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