IOB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.2

📊 Chart Patterns: IOB is trading below both its 50 DMA (38.2 ₹) and 200 DMA (40.8 ₹), showing weakness. Price action indicates a downtrend with support near 33 ₹ and resistance around 38–40 ₹.

📈 Moving Averages: Current price (34 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment.

📉 RSI: At 21.6, RSI is in oversold territory, suggesting the stock is heavily sold and may see a technical rebound.

📉 MACD: Negative (-1.07) indicates bearish crossover, confirming downside momentum.

📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions and potential for short-term bounce.

📊 Volume Trends: Current volume (1.98 Cr) is higher than 1-week average (1.57 Cr), showing strong selling pressure and volatility.

📌 Momentum Signals: Weak short-term momentum; possible rebound if support at 33 ₹ holds.

🎯 Entry Zone: 33–34 ₹ (near support).

🎯 Exit Zone: 38–40 ₹ (near resistance trendline).

🔎 Trend Status: Reversing from oversold levels but still in bearish territory.

Positive

• Quarterly PAT growth of 57.8% (₹1,226 Cr vs ₹1,111 Cr).
• EPS of 2.22 ₹ supports valuation stability.
• FII holdings increased (+0.23%), showing foreign investor interest.
• PEG ratio of 0.61 indicates reasonable valuation relative to growth.

Limitation

• High debt-to-equity ratio (11.1) raises financial risk concerns.
• ROCE (5.95%) and ROE (11.0%) are relatively weak compared to peers.
• Dividend yield is 0.00%, reducing income appeal.
• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.

Company Negative News

• Decline in DII holding (-0.07%) shows reduced domestic institutional confidence.
• Stock has delivered only 4.64% returns over 52 weeks, underperforming sector peers.

Company Positive News

• Strong quarterly profit growth with improving earnings momentum.
• FII inflows (+0.23%) highlight foreign investor confidence.
• High trading volumes indicate strong market activity and liquidity.

Industry

• Industry PE at 7.89 is lower than IOB’s P/E (15.3), suggesting premium valuation.
• Banking sector outlook remains positive with credit growth, though PSU banks face efficiency challenges.

Conclusion

⚖️ IOB is oversold with RSI at 21.6, suggesting potential for short-term rebound. Traders may consider entry near 33–34 ₹ with exit around 38–40 ₹. Long-term investors should be cautious due to high leverage, weak efficiency metrics, and underperformance relative to peers, despite improving quarterly profits and FII support.