IOB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | IOB | Market Cap | 65,184 Cr. | Current Price | 33.8 ₹ | High / Low | 42.8 ₹ |
| Stock P/E | 12.5 | Book Value | 19.5 ₹ | Dividend Yield | 0.00 % | ROCE | 6.06 % |
| ROE | 14.9 % | Face Value | 10.0 ₹ | DMA 50 | 34.2 ₹ | DMA 200 | 36.6 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,505 Cr. | PAT Prev Qtr | 1,365 Cr. |
| RSI | 47.8 | MACD | -0.21 | Volume | 29,79,870 | Avg Vol 1Wk | 31,07,372 |
| Low price | 31.2 ₹ | High price | 42.8 ₹ | PEG Ratio | 0.35 | Debt to equity | 11.2 |
| 52w Index | 22.9 % | Qtr Profit Var | 43.2 % | EPS | 2.70 ₹ | Industry PE | 7.92 |
📉 IOB is trading below both its 50 DMA (₹34.2) and 200 DMA (₹36.6), reflecting short-term and medium-term weakness. RSI at 47.8 indicates neutral-to-bearish momentum, while MACD is negative (-0.21), confirming mild bearish crossover. Bollinger Bands show price near the lower band, suggesting oversold conditions. Current volume (29.8 lakh) is slightly below average (31.0 lakh), showing reduced participation.
🔑 Short-term momentum signals: Weak, with potential upside only if price sustains above ₹35–₹36 zone.
🎯 Entry Zone: ₹32–₹34 (support region)
🚪 Exit Zone: ₹38–₹40 (resistance region)
📊 Trend Status: Consolidating with bearish tilt
Positive
- Quarterly PAT improved from ₹1,365 Cr. to ₹1,505 Cr. (+43.2%)
- EPS at ₹2.70 supports valuation
- FII (+0.08%) and DII (+0.02%) holdings increased
- PEG ratio at 0.35 highlights attractive growth valuation
- 52-week return of 22.9% shows investor interest
Limitation
- Trading below both 50 DMA and 200 DMA
- RSI below 50 indicates weak momentum
- Negative MACD confirms bearish crossover
- High debt-to-equity ratio (11.2) raises leverage concerns
- ROCE (6.06%) remains modest compared to peers
- No dividend yield
- Volume below average, limiting breakout potential
Company Negative News
- High leverage (Debt-to-equity 11.2) raises risk concerns
- Weak efficiency metrics (ROCE 6.06%)
- Price struggling to sustain above long-term averages
Company Positive News
- Quarterly PAT improved significantly (+43.2%)
- Institutional holdings increased (FII +0.08%, DII +0.02%)
- 52-week return of 22.9% reflects investor confidence
Industry
- Industry PE at 7.92 highlights sector trading at lower multiples
- Banking sector outlook remains cautious with credit growth and asset quality pressures
Conclusion
⚖️ IOB shows weak technical momentum with RSI below 50 and negative MACD. Entry is favorable near ₹32–₹34 with profit booking around ₹38–₹40. Trend remains consolidative with bearish tilt unless price sustains above 200 DMA (₹36.6). Fundamentals show improving PAT and attractive PEG ratio, but high leverage and weak efficiency metrics limit long-term upside.
Would you like me to extend this into a swing-trade overlay comparing IOB’s technicals against peers like Indian Bank, IDBI, and Canara Bank to highlight sector-relative positioning and momentum?