Indian Bank is a fundamentally strong PSU bank stock trading near its All-Time High (ATH) of 632.7. With a bullish technical structure and improving financials, this stock presents an excellent opportunity for both traders and long-term investors. Below, we analyze its fundamentals and technical breakout potential.
Fundamentals
✅ Strong Profit Growth – Net profit up 37% YoY (₹2,119 Cr in FY24).
✅ Improving Asset Quality – Gross NPA ↓ to 3.95% (from 5.95%).
✅ Undervalued – P/B 0.9x, Dividend Yield 2.5%.
✅ Govt-Backed – PSU stability + credit growth tailwinds.
Technical Analysis (Breakout & Momentum Setup)
Potential Targets if Breakout Sustains
Reversal Scenario (If Breakout Fails)
Trade Strategy
For Traders (Breakout Play)
For Investors (Long-Term Accumulation)
Conclusion
Indian Bank is a high-probability breakout candidate with strong fundamentals. A confirmed breakout above 648.5 could lead to a 13-46% rally, while a rejection may offer a buying opportunity near 538-559.
Key Triggers to Watch:
Banking sector momentum (PSU banks in focus).
Q1 FY25 results (Due in July 2025).
Broader market trend (Nifty Bank support).
🚀 Trade Setup:
🔹 Breakout above 648.5 → Momentum to 738+
🔹 Rejection → Buy near 538-559 for long-term
Disclaimer: lnkd.in/gJJDnvn2
Fundamentals
✅ Strong Profit Growth – Net profit up 37% YoY (₹2,119 Cr in FY24).
✅ Improving Asset Quality – Gross NPA ↓ to 3.95% (from 5.95%).
✅ Undervalued – P/B 0.9x, Dividend Yield 2.5%.
✅ Govt-Backed – PSU stability + credit growth tailwinds.
Technical Analysis (Breakout & Momentum Setup)
- Current Price Action (as of May 19, 2025 Close: 611.5)
- Trading near ATH (632.7) within a parallel bullish channel.
- Breakout Zone: 632.7 – 648.5 (ATH resistance band).
- A confirmed daily close above 648.5 before June 2, 2025, could trigger a strong bullish momentum.
Potential Targets if Breakout Sustains
- R1: 738.9 (↑13.96% from ATH)
- R2: 816 (↑23.83% from ATH)
- R3: 948 (↑46.18% from ATH – Extended bullish case)
Reversal Scenario (If Breakout Fails)
- Rejection Zone: If price fails to hold above 648.5, watch for a pullback to 538 – 559 (Key support & averaging zone).
- Break below 538 could indicate a deeper correction.
Trade Strategy
For Traders (Breakout Play)
- Entry: Wait for daily close above 648.5 (confirms breakout).
- Targets: 738.9 → 816 → 948 (Trail SL accordingly).
- Stop Loss: Below 620 (if breakout fails).
For Investors (Long-Term Accumulation)
- Buy on Dips: Accumulate near 559-538 if correction occurs.
- Hold for LT Targets: 950+.
Conclusion
Indian Bank is a high-probability breakout candidate with strong fundamentals. A confirmed breakout above 648.5 could lead to a 13-46% rally, while a rejection may offer a buying opportunity near 538-559.
Key Triggers to Watch:
Banking sector momentum (PSU banks in focus).
Q1 FY25 results (Due in July 2025).
Broader market trend (Nifty Bank support).
🚀 Trade Setup:
🔹 Breakout above 648.5 → Momentum to 738+
🔹 Rejection → Buy near 538-559 for long-term
Disclaimer: lnkd.in/gJJDnvn2
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.