RBLBANK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns: RBL Bank is trading slightly below its 50 DMA (303 ₹) but above its 200 DMA (262 ₹). Current price (300 ₹) suggests short-term weakness while long-term support remains intact. The stock has faced resistance near 332 ₹ (recent high).

📈 Moving Averages: Price < 50 DMA → bearish short-term. Price > 200 DMA → bullish long-term.

📉 RSI: 43.1 → weak momentum, close to oversold territory, signaling caution.

📉 MACD: -2.69 → bearish crossover, confirming short-term weakness.

📊 Bollinger Bands: Price near lower band, suggesting possible rebound if support holds.

📊 Volume Trends: Current volume (29,43,475) is lower than 1-week average (41,04,776) → declining participation, indicating lack of strong buying interest.

📍 Support Levels: 295 ₹, 262 ₹ (DMA 200), and 250 ₹.

📍 Resistance Levels: 303–305 ₹ (DMA 50), 320 ₹, and 332 ₹ (recent high).

🔎 Trend: The stock is consolidating between 295–305 ₹ with bearish bias. A breakdown below 295 ₹ may trigger reversal toward 262 ₹, while a breakout above 305 ₹ could lead to short-term bullish momentum.

Positive

• 📈 EPS at 7.87 ₹ supports valuation strength.
• 📊 DII holdings increased (+0.91%), showing domestic investor confidence.
• 📊 Price above 200 DMA indicates long-term resilience.

Limitation

• ⚠️ High P/E ratio (38.5) compared to industry PE (14.7) → overvaluation risk.
• ⚠️ Weak ROE (4.57%) and ROCE (6.04%) → poor capital efficiency.
• ⚠️ Debt-to-equity ratio (8.32) indicates high leverage risk.
• ⚠️ Quarterly PAT declined from 200 Cr. to 179 Cr. (-19.8%).

Company Negative News

• 📉 FII holdings declined (-2.07%), showing reduced foreign investor confidence.
• 📉 MACD negative, confirming weak short-term momentum.
• 📉 Quarterly profit decline adds pressure on fundamentals.

Company Positive News

• 📈 Price trading above 200 DMA, showing long-term support.
• 📊 Domestic institutional investors increasing stake.

Industry

• 🏦 Banking sector PE at 14.7, much lower than RBL Bank’s PE (38.5), suggesting valuation premium.
• 📊 Sector supported by credit growth but facing margin pressures.

Conclusion

🔎 RBL Bank is consolidating with bearish short-term signals (RSI weak, MACD negative, price below 50 DMA). Optimal entry zone lies near 290–295 ₹ if support holds, while exit/resistance zone is 305–320 ₹. A breakout above 320–332 ₹ could trigger bullish momentum. Long-term investors should be cautious of high leverage and weak profitability, while short-term traders may look for opportunities only on confirmed breakout above 305 ₹.