IOB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | IOB | Market Cap | 62,661 Cr. | Current Price | 32.5 ₹ | High / Low | 45.2 ₹ |
| Stock P/E | 13.2 | Book Value | 18.8 ₹ | Dividend Yield | 0.00 % | ROCE | 5.95 % |
| ROE | 11.0 % | Face Value | 10.0 ₹ | DMA 50 | 35.0 ₹ | DMA 200 | 38.1 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 1.96 % | PAT Qtr | 1,365 Cr. | PAT Prev Qtr | 1,226 Cr. |
| RSI | 36.6 | MACD | -0.83 | Volume | 47,12,362 | Avg Vol 1Wk | 62,03,846 |
| Low price | 31.6 ₹ | High price | 45.2 ₹ | PEG Ratio | 0.53 | Debt to equity | 10.9 |
| 52w Index | 7.05 % | Qtr Profit Var | 56.2 % | EPS | 2.47 ₹ | Industry PE | 7.57 |
📉 Chart & Trend: IOB is trading at ₹32.5, below both its 50 DMA (₹35.0) and 200 DMA (₹38.1), confirming a bearish bias.
📊 RSI: At 36.6, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -0.83, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce if support holds.
📊 Volume Trends: Current volume (47 lakh) is below the 1-week average (62 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹31–₹32 support is crucial; a breakout above ₹35 could trigger recovery.
🎯 Entry Zone: ₹31–₹32.5 (support zone, cautious entry).
🎯 Exit Zone: ₹38–₹40 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with oversold signals and weak momentum.
Positive
- Quarterly PAT improved to ₹1,365 Cr from ₹1,226 Cr (+56.2%).
- EPS at ₹2.47 supports valuations.
- DII holdings increased (+1.96%), showing domestic institutional confidence.
- PEG ratio at 0.53 suggests reasonable valuation relative to growth.
Limitation
- High debt-to-equity ratio (10.9) raises financial risk.
- ROE at 11.0% and ROCE at 5.95% are modest compared to peers.
- No dividend yield, limiting investor income support.
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- Weak technical momentum with bearish MACD.
- Stock under pressure technically with oversold signals.
Company Positive News
- Strong quarterly profit growth (+56.2%).
- DII inflows (+1.96%) show confidence in the company.
- FII holdings increased slightly (+0.04%).
Industry
- Industry PE at 7.57 is lower than IOB’s P/E of 13.2, showing premium valuations.
- Banking sector is benefiting from credit growth, though asset quality and leverage remain concerns.
Conclusion
⚠️ IOB is in a bearish trend with weak technical indicators. While quarterly profits have improved and institutional inflows are supportive, high leverage and modest return ratios limit attractiveness. Short-term traders may consider entry near ₹31–₹32.5 with strict stop-loss, targeting ₹38–₹40. Long-term investors should wait for stronger ROE/ROCE and trend reversal before accumulating.
Selva, since you’re benchmarking PSU banks, I can prepare a peer overlay with SBI, Bank of Baroda, and Canara Bank to compare IOB’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?