Federal Bank shares are in an uptrend, does this rally have more legs?

Federal Bank shares are in a short-term uptrend. The banking stock is up 35% in the last three months. The returns in three months exceed year to date (33.13%) and yearly (32%) returns for the banking stock. 

Federal Bank shares hit a record high of Rs 267.50 on Friday against the previous close of Rs 265.25. 

Market cap of the bank stood at Rs 65,618 crore. Total 0.35 lakh shares of the bank changed hands amounting to turnover of Rs 92.50 lakh on BSE.

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.

Jigar S Patel from Anand Rathi said, "Support will be Rs 260 and resistance at Rs 270. A decisive move above the Rs 270 level may trigger a further upside of Rs 275. The expected trading range will be between Rs 260 and Rs 275 for the short-term."

Recently, global brokerage UBS raised its price target to Rs 310 from Rs 250 earlier. 

Rajesh Palviya, SVP of Research at Axis Securities has a buy call on the banking stock with a price target of Rs 275. Stop Loss can be fixed  at Rs 245. 

"Federal Bank is in a strong uptrend, forming a series of higher tops and bottoms formation. High volumes in this rally signify increased participation. It is well placed above its 20, 50, 100 and 200-day SMA, and these averages are also inching up along with rising averages, which reconfirms bullish sentiments. The weekly and monthly strength indicator, RSI, is in favourable territory, indicating rising strength across all time frames. Investors should consider buying, holding, and accumulating this stock. Its expected upside is Rs 267-275, and its downside support zone is at Rs 255-250 levels," said Palviya. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 73.4, signaling the stock is trading in the overbought zone. Federal Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.