J&KBANK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.7

📈 J&KBANK is consolidating near its recent highs with neutral-to-bullish momentum and rising volume, suggesting potential for a breakout.

📊 Technical Analysis

• Trend: The stock is consolidating above its 50 DMA (₹105) and 200 DMA (₹104), indicating underlying strength.
• Moving Averages: Price is above both key averages, showing bullish bias.
• RSI (51.8): Neutral zone, with room for upside if momentum builds.
• MACD (0.87): Positive crossover, signaling early bullish momentum.
• Bollinger Bands: Price is near the middle band, confirming consolidation with low volatility.
• Volume: Current volume (46.8L) is higher than 1-week average (36.8L), indicating accumulation.

🎯 Entry & Exit Zones

• Support Zone: ₹104 – ₹106 (DMA levels)
• Resistance Zone: ₹115 – ₹117 (recent highs)
• Optimal Entry: ₹106 – ₹108 (on MACD strength and RSI > 55)
• Exit Target: ₹115 – ₹118 (breakout zone)

✅ Positive

• EPS of ₹19 and ROE of 15.7% reflect strong profitability.
• PEG ratio of 0.09 indicates undervaluation relative to growth.
• Dividend yield of 2.01% adds long-term investor appeal.
• Price has gained 73.2% over the past year.

⚠️ Limitation

• Debt-to-equity ratio of 10.2 is high, indicating leverage risk.
• MACD and RSI are not strongly bullish yet.
• Low P/E (5.69) may reflect market caution despite strong fundamentals.

📉 Company Negative News

• Quarterly profit declined by 10.3% from ₹485 Cr. to ₹494 Cr.
• FII and DII holdings decreased by 0.16% and 0.11% respectively.

📈 Company Positive News

• Trading above key moving averages with rising volume.
• MACD crossover and stable RSI suggest potential for upward breakout.

🏦 Industry

• Industry P/E is 14.5, much higher than J&KBANK’s, suggesting relative undervaluation.
• Banking sector is sensitive to credit cycles, interest rates, and regulatory changes.

🧾 Conclusion

• J&KBANK is currently consolidating with signs of accumulation and early bullish momentum.
• Short-term traders may enter near ₹108 if RSI and MACD strengthen.
• Long-term investors may accumulate with a target of ₹118 and stop-loss below ₹104.