Top trending stock: Federal Bank

Top trending stock: Federal Bank

by 5paisa Research Team Last Updated: Dec 15, 2022 - 05:14 am 37.8k Views
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In one month, the stock has gained over 11% and has outperformed the sector and most of its peers by a large margin.

Federal Bank Limited is a banking company having its business presence in four segments: Treasury, Corporate Banking, Retail Banking, and Credit Cards. It is a promising midcap company having strong growth fundamentals. In the last four years, this bank has reported increased revenues and net profits YoY. With such strong fundamentals, the mutual fund houses have included this stock in their portfolio and have increased their stake in the company in the last few quarters. About 66% of the total stake of the company is held by the institutions while the rest is held by HNIs and the public. Thus, the stock has strong institutional support.

In one month, the stock has gained over 11% and has outperformed the sector and most of its peers by a large margin. The stock has also delivered decent returns of over 20% to its shareholders in the past year.

The stock is quite bullish as per the technical chart. It has soared nearly 4% on Wednesday and has taken out its prior swing high.  It witnessed buying interest at lower levels near its 20-DMA and has shot up since then. It trades above all the key short term and long term moving averages. All its moving averages are upward sloping, indicating a strong uptrend of the stock. To justify its bullishness, the 14-period daily RSI has jumped over 60. The RSI has also given a breakout from its downward sloping trendline, indicating strong strength in the stock.  Moreover, the Elder Impulse system has given a fresh buy signal. The other momentum indicators and oscillators are also indicating bullish momentum. The bullish view of technical parameters is validated by the above-average volume recorded today, which is greater than the 30-day average volume.

Considering the strong price action and bullish technical parameters, backed by good volume, the stock has the potential to deliver decent returns in the short to medium term. Positional traders/short term traders find it to be an attractive stock for swing trading too.


Also read: Bharti Airtel Q3 net profit slips but ARPU improves on tariff hike

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