IndusInd Bank is recommended as the top pick by expert Sumeet Bagadia for the upcoming period, citing positive indicators in its stock behavior. Currently priced at ₹1,550, the bank has recently shown signs of a strong uptrend by forming higher highs and higher lows, breaking out of its previous trading range. The expert predicts continued bullish momentum, with a target range of ₹1,690 to ₹1,800, while emphasizing robust support at ₹1,440.
Key technical indicators, such as Exponential Moving Averages (EMAs) and Relative Strength Index (RSI), suggest a favorable outlook. The stock is trading above key EMAs, indicating strong bullish momentum, and the RSI is on an upward trajectory at 57.54, reflecting increasing buying momentum. The Stochastic Relative Strength Index (Stoch RSI) also shows a positive crossover, supporting the potential for reaching target prices.
Considering the current market conditions and technical analysis, the expert advises a strategic approach, suggesting buying on dips at ₹1,510 for those aiming for the ₹1,690 to ₹1,800 price target, with prudent risk management.
Stock Performance:
IndusInd Bank has shown significant growth, increasing by almost 39% in the last year, outperforming the Nifty Bank index, which grew by 15.6% during the same period. In March 2024, the stock has already gained over 6%, recovering from a 4% fall in both February and January 2024. Year-to-date, the stock is down 2%, compared to a 1% fall in Nifty Bank.
As of now, the stock is trading at ₹1,553.75, about 8% below its 52-week high of ₹1,694.35 (January 15, 2024), but it has seen a 57% increase from its 52-week low of ₹990.25 (March 20, 2023).
Earnings Update:
IndusInd Bank reported a 17.3% rise in standalone net profit at ₹2,297.8 crore for the quarter ended December 2023, with growth in net interest income and stable net interest margin. Gross and net NPL ratios remained largely unchanged, with the bank maintaining a strong position in terms of Return on Assets (RoA) and Return on Equity (RoE).
Fundamental View:
Motilal Oswal has a ‘buy’ recommendation with a target price of ₹1,900, projecting consistent performance and positive indicators across credit cost, margins, and operating expenses. The bank’s focus on retail segments and efforts to fortify contingency reserves contribute to its positive outlook. Emkay Global also maintains a ‘buy’ rating, raising the target price to ₹2,000, emphasizing the bank’s improved earnings, return on equity trajectory, and stable margins.
In summary, IndusInd Bank appears to be a promising choice, backed by positive technical and fundamental factors, as highlighted by market experts.
