IOB - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📈 IOB is trending upward with moderate momentum and improving volume, though technical resistance and valuation concerns remain.

📊 Technical Analysis

• Trend Status: Trending — price is above 50-DMA and approaching 200-DMA, indicating bullish recovery.
• Moving Averages: Price ₹40.5 is above 50-DMA (₹39.4) but slightly below 200-DMA (₹41.8), suggesting a breakout setup.
• RSI (52.5): Neutral to bullish zone, indicating steady momentum with room to rise.
• MACD (0.27): Positive crossover, signaling early bullish momentum.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (2.19 Cr) is significantly above weekly average (1.28 Cr), confirming strong participation.

🎯 Entry & Exit Zones

• Support Levels: ₹39.4 (50-DMA), ₹37.5, ₹35
• Resistance Levels: ₹41.8 (200-DMA), ₹45, ₹50
• Optimal Entry: ₹39–₹40 (on pullback)
• Exit Target: ₹45–₹50 (resistance zone)

✅ Positive

• Quarterly PAT rose from ₹1,111 Cr to ₹1,226 Cr, showing strong earnings growth.
• EPS of ₹2.22 and PEG ratio of 0.73 suggest reasonable valuation relative to growth.
• FII holdings increased by 0.23%, indicating foreign investor confidence.
• Price has rebounded 22.7% from its 52-week low of ₹33.

⚠️ Limitation

• Price still below 200-DMA, indicating technical resistance.
• ROCE (5.95%) and ROE (11.0%) are modest, reflecting average capital efficiency.
• Dividend yield is 0%, offering no passive income.

📉 Company Negative News

• DII holdings declined by 0.07%, showing minor domestic investor caution.
• Debt-to-equity ratio of 11.1 is high, typical for banks but worth monitoring.

📈 Company Positive News

• Quarterly profit variation of 57.8% reflects strong operational improvement.
• MACD and volume trends suggest bullish momentum building.

🏭 Industry

• Banking sector remains robust with improving credit demand and digital transformation.
• Industry P/E (8.10) is lower than IOB’s (18.3), indicating premium valuation.

🧾 Conclusion

• IOB is trending upward with improving technical indicators and strong earnings momentum.
• Entry near ₹39–₹40 could offer a favorable setup with targets around ₹45–₹50.
• Investors should monitor resistance at 200-DMA and debt levels for sustained upside.