This Jhunjhunwala stock hits record high for fourth day, overbought on charts; time to sell?
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 5.90 crore shares or 2.42 per cent stake in the lender at the end of September 2025 quarter.
- Oct 28, 2025,
- Updated Oct 28, 2025 3:46 PM IST
Shares of Federal Bank hit their record high on Tuesday despite a correction in the broader market. The banking stock hit its record high for the fourth straight session, turning overbought on charts. The Jhunjhunwala stock rose to its record high of Rs 236.65 from the previous close of Rs 233.95. Market cap of the bank stood at Rs 58,020 crore.
Federal Bank stock has delivered multibagger returns of 351% in five years. The bank has delivered positive returns across across all time periods. It has a high RSI of 82.6 on charts, signalling more buyers than sellers in the market.
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 5.90 crore shares or 2.42 per cent stake in the private lender at the end of September 2025 quarter.
The stock has been in an uptrend amid a key development that Blackstone, through its affiliate Asia II Topco XIII, will buy a 9.99 per cent stake in the lender by investing Rs 6,196.51 crore.
Nirmal Bang has upgraded Federal Bank from a ‘Hold’ to a ‘Buy’ with a revised target price of Rs 266 as against Rs 224 earlier.
"We have estimated the warrants to be converted into equity shares by FY26 end, which will result in 11.1 per cent equity dilution and lead to an improvement of 280bps in the CAR to 18.5 per cent (from 15.7 per cent in September 2025), " said the brokerage.
Riyank Arora, technical analyst at Mehta Equities said, "Federal Bank stock continues to show steady momentum after a period of consolidation, supported by strong fundamentals and consistent earnings growth. The stock has formed a solid base around Rs 225, indicating accumulation at lower levels. Sustaining above Rs 230 could trigger a fresh rally towards Rs 245–Rs 255 in the near term. Outlook remains positive, with a buy-on-dips strategy favoured."
Citi Research said post-conversion, FY28E networth is projected to increase 14%, book value accretion to exceed 2% in FY28. CET-1 is expected to rise by over 200 bps, return on assets (RoAs) to gain 5 bps, RoE to dilute by smaller than 1%, and EPS dilution to be 6%. Citi has maintained a price target of Rs 250 on the lender post fundraising announcement.
Amruta Shinde, Research Analyst, Choice Broking is bullish on the outlook of the Jhunjhunwala stock.
"Federal Bank is exhibiting strong bullish momentum. The stock has formed a rounding bottom pattern with higher highs and higher lows and has broken out of this formation with a strong green candle, marking a new all-time high and signaling continued upward potential. A decisive breakout above Rs 240 with rising volumes could trigger the next phase of a bullish rally. The stock’s position above its 20-, 50-, and 200-day EMAs confirms a positive trend across all timeframes. Immediate resistance is placed at Rs 240, with a breakout potentially targeting Rs 250. On the downside, support lies at Rs 230. Traders may consider buying at Rs 234 with a stop loss at Rs 225 and a target of Rs 250."
Shares of Federal Bank hit their record high on Tuesday despite a correction in the broader market. The banking stock hit its record high for the fourth straight session, turning overbought on charts. The Jhunjhunwala stock rose to its record high of Rs 236.65 from the previous close of Rs 233.95. Market cap of the bank stood at Rs 58,020 crore.
Federal Bank stock has delivered multibagger returns of 351% in five years. The bank has delivered positive returns across across all time periods. It has a high RSI of 82.6 on charts, signalling more buyers than sellers in the market.
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 5.90 crore shares or 2.42 per cent stake in the private lender at the end of September 2025 quarter.
The stock has been in an uptrend amid a key development that Blackstone, through its affiliate Asia II Topco XIII, will buy a 9.99 per cent stake in the lender by investing Rs 6,196.51 crore.
Nirmal Bang has upgraded Federal Bank from a ‘Hold’ to a ‘Buy’ with a revised target price of Rs 266 as against Rs 224 earlier.
"We have estimated the warrants to be converted into equity shares by FY26 end, which will result in 11.1 per cent equity dilution and lead to an improvement of 280bps in the CAR to 18.5 per cent (from 15.7 per cent in September 2025), " said the brokerage.
Riyank Arora, technical analyst at Mehta Equities said, "Federal Bank stock continues to show steady momentum after a period of consolidation, supported by strong fundamentals and consistent earnings growth. The stock has formed a solid base around Rs 225, indicating accumulation at lower levels. Sustaining above Rs 230 could trigger a fresh rally towards Rs 245–Rs 255 in the near term. Outlook remains positive, with a buy-on-dips strategy favoured."
Citi Research said post-conversion, FY28E networth is projected to increase 14%, book value accretion to exceed 2% in FY28. CET-1 is expected to rise by over 200 bps, return on assets (RoAs) to gain 5 bps, RoE to dilute by smaller than 1%, and EPS dilution to be 6%. Citi has maintained a price target of Rs 250 on the lender post fundraising announcement.
Amruta Shinde, Research Analyst, Choice Broking is bullish on the outlook of the Jhunjhunwala stock.
"Federal Bank is exhibiting strong bullish momentum. The stock has formed a rounding bottom pattern with higher highs and higher lows and has broken out of this formation with a strong green candle, marking a new all-time high and signaling continued upward potential. A decisive breakout above Rs 240 with rising volumes could trigger the next phase of a bullish rally. The stock’s position above its 20-, 50-, and 200-day EMAs confirms a positive trend across all timeframes. Immediate resistance is placed at Rs 240, with a breakout potentially targeting Rs 250. On the downside, support lies at Rs 230. Traders may consider buying at Rs 234 with a stop loss at Rs 225 and a target of Rs 250."