IOB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | IOB | Market Cap | 66,202 Cr. | Current Price | 34.4 ₹ | High / Low | 52.4 ₹ |
| Stock P/E | 13.9 | Book Value | 18.8 ₹ | Dividend Yield | 0.00 % | ROCE | 5.95 % |
| ROE | 11.0 % | Face Value | 10.0 ₹ | DMA 50 | 36.2 ₹ | DMA 200 | 39.4 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 1.96 % | PAT Qtr | 1,365 Cr. | PAT Prev Qtr | 1,226 Cr. |
| RSI | 42.2 | MACD | -0.39 | Volume | 93,12,585 | Avg Vol 1Wk | 77,43,170 |
| Low price | 33.0 ₹ | High price | 52.4 ₹ | PEG Ratio | 0.56 | Debt to equity | 10.9 |
| 52w Index | 6.91 % | Qtr Profit Var | 56.2 % | EPS | 2.47 ₹ | Industry PE | 7.64 |
📊 Chart Patterns & Trend: Indian Overseas Bank (IOB) is consolidating near the 34–36 ₹ zone. Price is trading below both the 50 DMA (36.2 ₹) and 200 DMA (39.4 ₹), indicating short-term weakness and medium-term resistance. Strong support is visible near 33 ₹, while resistance lies around 38–40 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 37–38 ₹ would confirm bullish momentum.
📉 RSI: At 42.2, RSI is weak, suggesting bearish momentum and limited buying strength.
📉 MACD: Slightly negative (-0.39), showing mild bearish crossover and lack of strong momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 36–37 ₹ is possible if support holds.
📊 Volume Trends: Current volume (93 lakh) is higher than average weekly volume (77 lakh), showing active participation despite consolidation.
🎯 Entry Zone: 33–35 ₹ (support zone).
🎯 Exit Zone: 38–40 ₹ (resistance zone).
🔑 Stop Loss: 32 ₹ (below recent support).
Positive
- Quarterly PAT improved from 1,226 Cr. to 1,365 Cr. (56.2% growth).
- EPS at 2.47 ₹ supports valuation strength.
- DII holdings increased (+1.96%), showing strong domestic institutional support.
- PEG ratio at 0.56 indicates undervaluation relative to growth.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- ROCE at 5.95% and ROE at 11.0% are modest compared to peers.
- Dividend yield at 0.00% reduces income attractiveness.
- High debt-to-equity ratio (10.9) reflects leverage typical of PSU banks.
Company Negative News
- Stock corrected from 52.4 ₹ to 34.4 ₹, reflecting investor caution.
- Weak return ratios limit efficiency and profitability outlook.
Company Positive News
- Quarterly PAT growth highlights strong operational performance.
- DII inflows (+1.96%) show domestic institutional confidence.
- FII holdings increased slightly (+0.04%).
Industry
- Industry PE at 7.64 vs. stock PE at 13.9 highlights premium valuation.
- Banking sector supported by credit growth, government reforms, and digital adoption.
Conclusion
⚖️ IOB is in a consolidation phase with mild bearish signals (MACD negative, RSI weak). Medium-term outlook remains supported by strong PAT growth and institutional inflows, but valuation is stretched compared to industry peers. Entry near 33–35 ₹ offers margin of safety, while breakout above 38 ₹ could trigger momentum toward 40 ₹. Risk management is essential due to modest return ratios and high leverage.
Would you like me to extend this into a peer benchmarking overlay with other PSU banks (like Bank of India, UCO Bank, and Central Bank of India) to highlight relative strength and sector rotation opportunities?