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J&KBANK - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 22 Mar 26, 12:00 pm

Technical Rating: 3.6

Stock Code J&KBANK Market Cap 13,077 Cr. Current Price 119 ₹ High / Low 128 ₹
Stock P/E 6.08 Book Value 143 ₹ Dividend Yield 1.81 % ROCE 6.14 %
ROE 15.7 % Face Value 1.00 ₹ DMA 50 112 ₹ DMA 200 106 ₹
Chg in FII Hold 0.29 % Chg in DII Hold 0.08 % PAT Qtr 587 Cr. PAT Prev Qtr 494 Cr.
RSI 53.6 MACD 3.73 Volume 61,79,626 Avg Vol 1Wk 80,63,651
Low price 82.0 ₹ High price 128 ₹ PEG Ratio 0.10 Debt to equity 10.0
52w Index 79.2 % Qtr Profit Var 10.4 % EPS 19.5 ₹ Industry PE 14.2

📊 Technical Analysis

  • Chart Patterns: Price is trading above both 50 DMA (₹112) and 200 DMA (₹106), showing bullish undertone.
  • RSI: At 53.6, in neutral-to-bullish territory, suggesting moderate strength.
  • MACD: Positive (3.73), confirming mild bullish momentum.
  • Bollinger Bands: Price near mid-to-upper band, indicating consolidation with upward bias.
  • Volume Trends: Current volume (61.8 Lakh) is lower than 1-week average (80.6 Lakh), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Neutral to mildly bullish, supported by positive MACD and RSI above 50.
  • Support Zone: ₹112 – ₹115 (near 50 DMA).
  • Resistance Zone: ₹125 – ₹128 (recent high).
  • Trend: Currently consolidating with bullish bias.

✅ Positive

  • Strong ROE (15.7%) compared to peers.
  • EPS at ₹19.5 reflects solid earnings capability.
  • Quarterly PAT improved (₹587 Cr vs ₹494 Cr).
  • FII (+0.29%) and DII (+0.08%) holdings increased, showing institutional confidence.
  • PEG ratio of 0.10 indicates attractive valuation relative to growth.
  • Dividend yield of 1.81% provides shareholder returns.
  • 52-week index performance at 79.2% shows strong long-term momentum.

⚠️ Limitation

  • ROCE (6.14%) is modest compared to peers.
  • Debt-to-equity ratio of 10.0 indicates high leverage risk.
  • Volume participation weaker than average, reducing conviction in breakout potential.

📉 Company Negative News

  • High debt levels remain a concern.
  • ROCE relatively weak compared to industry standards.

📈 Company Positive News

  • Quarterly PAT growth of 10.4% sequentially.
  • EPS at ₹19.5 shows consistent profitability.
  • Institutional investors increasing stake (FII & DII).

🏭 Industry

  • Industry PE at 14.2 vs J&KBANK’s PE of 6.08, suggesting undervaluation.
  • Banking sector outlook remains strong with credit growth and improving profitability.

🔎 Conclusion

  • J&KBANK is in a consolidation phase with bullish bias.
  • Optimal entry: ₹112 – ₹115 (support zone).
  • Exit/Profit booking: ₹125 – ₹128 (resistance zone).
  • Short-term traders can play the range; long-term investors may accumulate gradually given undervaluation and strong fundamentals, though high leverage remains a risk.

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