KOTAKBANK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | KOTAKBANK | Market Cap | 4,05,064 Cr. | Current Price | 407 ₹ | High / Low | 460 ₹ |
| Stock P/E | 29.9 | Book Value | 126 ₹ | Dividend Yield | 0.12 % | ROCE | 7.45 % |
| ROE | 15.4 % | Face Value | 1.00 ₹ | DMA 50 | 424 ₹ | DMA 200 | 415 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.86 % | PAT Qtr | 3,446 Cr. | PAT Prev Qtr | 3,253 Cr. |
| RSI | 33.7 | MACD | -5.32 | Volume | 92,18,452 | Avg Vol 1Wk | 2,53,11,604 |
| Low price | 375 ₹ | High price | 460 ₹ | PEG Ratio | 1.23 | Debt to equity | 4.42 |
| 52w Index | 37.4 % | Qtr Profit Var | 4.28 % | EPS | 13.6 ₹ | Industry PE | 15.8 |
📊 Chart Patterns & Trend: The stock is trading at ₹407, below its 50 DMA (₹424) and slightly below the 200 DMA (₹415), reflecting mild bearish pressure. Price action is near the lower end of its 52-week range (₹375–₹460), suggesting weak momentum with consolidation signs.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming short-term weakness. A recovery above ₹424 would be the first bullish signal, while sustaining above ₹440–₹450 would confirm reversal.
📉 RSI: At 33.7, RSI is close to oversold territory, indicating potential for a short-term rebound if buying interest emerges.
📉 MACD: Negative at -5.32, showing bearish divergence. Trend remains weak until MACD crosses upward.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹420–₹430.
📊 Volume Trends: Current volume (92.1 Lakh) is significantly lower than average weekly volume (2.53 Cr), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹395–₹410 (near support and oversold RSI).
🎯 Exit Zone: ₹430–₹450 (near resistance and upper Bollinger band).
📌 Trend Status: Consolidating with bearish bias. A reversal may occur if RSI rebounds and price sustains above ₹424–₹440.
Positive
- Strong ROE (15.4%) highlights efficient shareholder returns.
- Quarterly PAT improved to ₹3,446 Cr from ₹3,253 Cr, showing earnings growth.
- DII holdings increased (+0.86%), reflecting domestic institutional support.
- EPS at ₹13.6 remains healthy compared to peers.
Limitation
- Stock P/E (29.9) is significantly higher than industry PE (15.8), indicating overvaluation.
- ROCE at 7.45% is relatively weak compared to sector leaders.
- Debt-to-equity ratio of 4.42 is high, raising leverage concerns.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
Company Negative News
- FII holdings decreased (-0.39%), showing reduced foreign investor confidence.
- Volume activity below average indicates weak investor participation.
Company Positive News
- DII holdings increased (+0.86%), showing strong domestic institutional support.
- Quarterly profit growth (+4.28%) indicates improving fundamentals.
Industry
- Industry PE at 15.8 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- KOTAKBANK trades at a premium but maintains strong fundamentals with consistent profitability.
Conclusion
⚖️ KOTAKBANK is currently consolidating near support levels with weak momentum indicators (RSI and MACD). Entry near ₹395–₹410 offers favorable risk-reward, while exits around ₹430–₹450 align with resistance. Sustained buying and a move above ₹424–₹440 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.