IndusInd Bank Ltd

NSE :INDUSINDBK   BSE :532187  Sector : Banks

About Company: IndusInd Bank Limited was incorporated in 1994 as a commercial bank under the Banking Regulation Act, 1949. The Bank is publicly held and provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. The Bank operates in India including at the International Financial Service Centers in India.

News in Indusind Bank: Day before yesterday on 31st Jan 2022 company posted its Q3FY22 results . The Q3FY22 PAT of IndusInd Bank (IIB) at Rs 12.4bn was exactly in line with estimates. Asset quality witnessed mixed trends; slippages remaining high at 4.7% IIB continues to strengthen its provision buffer — a useful cushion in dealing with current uncertainty. Business traction is on expected lines.

Daily Chart of IndusInd bank:

Technical Outlook of IndusInd Bank:

On Wednesday 2nd Feb 22, stock witnessed buying interest on account of good third quarter results. Stock gained 5.75% and price appreciated by Rs.53.05 per share, stock closed at 975.35 on NSE. Volumes traded were higher than usual & a continuous rise in volume has been seen in the last three trading sessions.In the intraday trading session stock saw a swift one sided rally. IndusInd bank shares opened gapup above previous days high. Touched intraday high of 981.80 and closed near day’s high.

On the Daily chart, Stock formed a double bottom pattern as plotted on the chart above. 800-810 is acting as strong support for the stock. Today stock managed to close above the 50 days exponential moving average and heading towards 100 & 200 days exponential moving averages. If we look at 14-period Relative Strength Index (RSI) we observed trendline breakout which signals momentum in the stock.

Looking at chart structure, chart pattern and good results one can initiate a long position in the stock around 950-970. Expected targets on the upside are 1250 in the next 2-3 months. If stock closed below 800 will enter bearish territory, so stop loss should be maintained below support level i.e. below 800 on closing basis.