MAHABANK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns & Trend: MAHABANK is consolidating near its recent high of 61.6 ₹. The current price (57.3 ₹) is aligned with the 50 DMA (57.5 ₹) and above the 200 DMA (55.6 ₹), indicating medium-term strength but short-term indecision. The stock is trending sideways with support from moving averages and resistance overhead.

📈 Moving Averages:

- Price above 200 DMA confirms medium-term bullish undertone.

- Trading near 50 DMA shows consolidation.

- Breakout above 58–60 ₹ could trigger momentum toward 61.6 ₹.

📉 RSI: At 43.1, RSI is neutral to weak, suggesting limited buying strength.

📉 MACD: Slightly negative (-0.47), showing weak momentum and consolidation.

📊 Bollinger Bands: Price is near the mid-band, confirming sideways consolidation with potential breakout signals.

📊 Volume Trends: Current volume (77,56,179) is slightly below the 1-week average (81,86,104), showing reduced participation but steady interest.

🎯 Entry Zone: 56–57 ₹ (near support).

🎯 Exit Zone: 60–62 ₹ (near resistance trendline and 52-week high).

⚡ Support Levels: 55.6 ₹ and 52 ₹.

⚡ Resistance Levels: 58 ₹ and 61.6 ₹.

Positive

• Strong ROE (22.9%) highlights profitability efficiency.
• Dividend yield of 2.61% provides attractive income return.
• Quarterly PAT growth (1,633 Cr. vs 1,593 Cr.) shows consistent earnings momentum.
• FII holdings increased (+2.79%) and DII holdings increased (+2.34%), reflecting strong investor confidence.

Limitation

• ROCE modest at 5.78%, reflecting average capital efficiency.
• Debt-to-equity ratio high at 10.6, typical for banks but a leverage concern.
• RSI weak at 43.1, showing limited buying strength.
• MACD negative, indicating short-term consolidation.

Company Negative News

• MACD bearish crossover signals short-term weakness.
• Volume participation lower than average, limiting momentum.

Company Positive News

• Quarterly PAT increased 23.1%, showing strong profitability growth.
• EPS of 7.96 ₹ supports earnings visibility.
• Strong FII and DII inflows reflect investor confidence.

Industry

• Industry P/E at 7.89, close to MAHABANK’s 7.22, suggesting fair valuation.
• Banking sector outlook remains strong with credit growth and stable demand.

Conclusion

⚖️ MAHABANK is consolidating with weak RSI and slightly negative MACD, showing short-term indecision but medium-term resilience. Traders may consider entry around 56–57 ₹ with exits near 60–62 ₹. The stock is consolidating, awaiting breakout above 58–61.6 ₹ for trend continuation.