INDUSINDBK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📉 INDUSINDBK is reversing from a downtrend with short-term bullish momentum, though weak fundamentals and recent earnings volatility raise caution.

📊 Technical Analysis

• Trend Status: Reversing — price has moved above 50-DMA but remains below 200-DMA, suggesting a recovery attempt.
• Moving Averages: Price ₹797 is above 50-DMA (₹766) but below 200-DMA (₹858), indicating partial trend reversal.
• RSI (62.9): Bullish zone, showing upward momentum with potential continuation.
• MACD (12.0): Strong bullish crossover, confirming short-term strength.
• Bollinger Bands: Price approaching upper band, suggesting strength but nearing resistance.
• Volume: Current volume (36.4L) is below weekly average (55.3L), indicating moderate participation.

🎯 Entry & Exit Zones

• Support Levels: ₹766 (50-DMA), ₹740, ₹710
• Resistance Levels: ₹820, ₹858 (200-DMA), ₹900
• Optimal Entry: ₹770–₹785 (on pullback)
• Exit Target: ₹858–₹900 (resistance zone)

✅ Positive

• MACD and RSI indicate strong short-term momentum.
• Price has rebounded 31.8% from its 52-week low of ₹605.
• FII holdings increased by 0.64%, showing foreign investor confidence.

⚠️ Limitation

• Price still below 200-DMA, indicating long-term resistance.
• Volume below average, limiting conviction in the rally.
• ROCE (6.49%) and ROE (4.15%) are weak, reflecting poor capital efficiency.

📉 Company Negative News

• Quarterly PAT dropped from ₹684 Cr to -₹445 Cr, indicating a sharp earnings reversal.
• DII holdings declined by 1.61%, showing domestic investor caution.
• EPS of -₹7.64 and missing P/E ratio reflect negative earnings.

📈 Company Positive News

• Book value of ₹830 suggests the stock is trading below intrinsic value.
• Debt-to-equity ratio of 6.73 is typical for banks but remains manageable.

🏭 Industry

• Banking sector remains resilient with improving credit demand and digital transformation.
• Industry P/E (14.5) is unavailable for INDUSINDBK due to negative earnings, indicating valuation uncertainty.

🧾 Conclusion

• INDUSINDBK is reversing with short-term bullish signals but faces long-term resistance and weak fundamentals.
• Entry near ₹770–₹785 could offer speculative value with targets around ₹858–₹900.
• Investors should monitor earnings recovery and volume trends before committing to long-term positions.