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MAHABANK - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.8

Stock Code MAHABANK Market Cap 47,134 Cr. Current Price 61.3 ₹ High / Low 67.8 ₹
Stock P/E 7.29 Book Value 43.3 ₹ Dividend Yield 2.49 % ROCE 5.78 %
ROE 22.9 % Face Value 10.0 ₹ DMA 50 61.6 ₹ DMA 200 57.5 ₹
Chg in FII Hold 2.57 % Chg in DII Hold 3.44 % PAT Qtr 1,779 Cr. PAT Prev Qtr 1,633 Cr.
RSI 40.1 MACD 1.01 Volume 1,94,60,112 Avg Vol 1Wk 1,68,92,418
Low price 38.1 ₹ High price 67.8 ₹ PEG Ratio 0.11 Debt to equity 10.6
52w Index 78.1 % Qtr Profit Var 26.5 % EPS 8.45 ₹ Industry PE 7.64

📈 Technical Analysis

  • Chart Patterns: Price is near 50 DMA (61.6 ₹) and above 200 DMA (57.5 ₹), showing stability.
  • Moving Averages: Current price (61.3 ₹) is slightly below 50 DMA but above 200 DMA, indicating consolidation.
  • RSI: At 40.1, nearing oversold territory, suggesting potential rebound.
  • MACD: Positive (1.01), showing mild bullish momentum.
  • Bollinger Bands: Price is mid-to-lower band, suggesting consolidation with upside potential.
  • Volume Trends: Current volume (1,94,60,112) is higher than 1-week average (1,68,92,418), indicating strong participation.

📊 Momentum & Trend

  • Short-term Momentum: Neutral to mildly bullish with MACD positive and RSI weak.
  • Support Zone: 60 ₹ – 61 ₹ (near current levels).
  • Resistance Zone: 64 ₹ – 66 ₹ (near recent highs).
  • Trend: Consolidating with mild bullish bias.
  • Optimal Entry: Around 60 ₹ – 61 ₹ if support holds.
  • Optimal Exit: Around 64 ₹ – 66 ₹ unless breakout occurs.

✅ Positive

  • Strong ROE (22.9%) indicates efficient use of equity.
  • Dividend yield of 2.49% provides investor returns.
  • Quarterly PAT growth (1,779 Cr vs 1,633 Cr), showing earnings improvement.
  • FII holding increased (+2.57%) and DII holding increased (+3.44%), showing strong institutional confidence.
  • PEG ratio (0.11) indicates attractive valuation relative to growth.

⚠️ Limitation

  • ROCE (5.78%) is modest compared to peers.
  • High debt-to-equity ratio (10.6) indicates significant leverage risk.
  • Current price slightly below 50 DMA suggests short-term weakness.

📉 Company Negative News

  • High leverage (Debt-to-equity 10.6) raises financial risk.
  • RSI at 40.1 indicates weak momentum and oversold conditions.

📈 Company Positive News

  • Quarterly profit growth of 26.5% indicates strong operational improvement.
  • FII and DII holdings both increased, reflecting strong institutional confidence.

🏭 Industry

  • Industry PE at 7.64, close to company PE (7.29), suggesting fair valuation.
  • Sector outlook remains steady with consistent demand in banking.

🔎 Conclusion

  • Stock is consolidating with mild bullish signals but faces resistance near 64 ₹ – 66 ₹.
  • Entry near support (60 ₹ – 61 ₹) could be favorable for short-term trades.
  • Exit near resistance (64 ₹ – 66 ₹) unless breakout confirms further upside.
  • Long-term investors may benefit from strong ROE, dividend yield, and institutional support, but should monitor leverage risks and modest ROCE.

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