J&KBANK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.4

📊 Chart patterns & trend: J&KBANK is trading below both its 50 DMA (104 ₹) and 200 DMA (104 ₹), indicating short-term weakness after a pullback from 117 ₹. Price is hovering near the 95–100 ₹ support band, suggesting consolidation.

📈 Moving averages: Current price (98.5 ₹) below key DMAs signals overhead resistance around 104 ₹. A sustained close above 104–106 ₹ would improve momentum.

📉 RSI: At 38.6, RSI is near oversold, hinting at a potential short-term bounce if demand returns.

📉 MACD: Negative at -1.57, showing bearish bias and absence of a bullish crossover yet.

📊 Bollinger Bands: Price near the lower band indicates oversold conditions and room for mean reversion toward the mid-band (~102–104 ₹).

🔊 Volume trends: Volume (15,54,318) below 1-week average (25,92,675) reflects cautious participation; confirmation requires a pickup in buying volumes.

🎯 Short-term momentum: Mixed—RSI/Bands suggest rebound potential, but MACD and below-DMA structure keep bias bearish until a 104+ breakout on strong volume.

💹 Entry zone: 92–96 ₹ (support cluster; tighter risk control below 92 ₹).

💹 Exit zone: 105–110 ₹ (resistance near DMAs and prior supply).

📌 Overall trend: Consolidating with bearish undertones; watch for a volume-backed reclaim of 104–106 ₹ to shift momentum.

Positive

• Valuation: Very low P/E of 5.17 vs industry 14.7, signaling relative undervaluation.
• Profitability: ROE at 15.7% is strong for the price point.
• Income: Dividend yield of 2.15% adds carry while waiting for an up-move.

Limitation

• Leverage: High debt-to-equity at 10.2 typical for banks but implies sensitivity to credit cycles.
• Efficiency: ROCE at 6.14% is modest.
• Technical: Trading below both DMAs with weak MACD limits immediate upside.

Company Negative News

• Institutional flow: FII (-0.16%) and DII (-0.11%) reductions show softer institutional sentiment.
• Earnings trend: Quarterly profit variation at -10.3% indicates recent pressure.

Company Positive News

• PAT stability: PAT of 494 Cr. vs 485 Cr. shows resilience.
• Technical setup: Near key support; oversold readings can catalyze a bounce if volumes improve.

Industry

• Sector valuation: Industry P/E ~14.7 suggests room for rerating if asset quality and growth sustain.
• Backdrop: Banking benefits from credit growth but is sensitive to rates, liquidity, and NPA cycles.

Conclusion

⚖️ Near-term setup is a consolidation with a cautious bias. Entries at 92–96 ₹ offer defined risk; look to scale out at 105–110 ₹. A decisive close above 104–106 ₹ on rising volume would confirm momentum shift; failure to reclaim may retest 92–94 ₹ support.