IndusInd Bank at Rs 800? Short-term gains possible, technical chart shows

IndusInd Bank Ltd shares might be trading lower in Wednesday's trade, the recent technical momentum suggests the banking stock has potential to hit a target Rs 800 in the short-term, Systematix Shares and Stocks (India) suggested in a noye. The brokerage said IndusInd Bank has completed a bullish reversal AB=CD harmonic pattern on the daily chart, with the potential reversal zone identified at Rs 736–Rs 733 levels.

Supporting this setup, the brokearge noted that the stock formed a large bullish candlestick, closing 2.85 per cent higher in the previous session, signalling strong buying interest. 

"Importantly, the stock has sustained above the past ten-day high and confirmed a range breakout, further strengthening the bullish outlook. Additionally, prices have closed above the 20 DMA, indicating a shift in the short-term trend to bullish," Systematix Shares and Stocks said.  

The breakout was supported by above-average volumes, adding conviction to the move, the brokerage added.

Systematix Shares and Stocks said the momentum on the counter is also aligning with price action the RSI-14 is showing positive divergence on the daily chart, highlighting accumulation at lower levels and strengthening the bullish bias.

It suggested buying the stock in the range of Rs 754.50-750, with a stop loss placed at Rs 728 for an initial target of Rs 782, followed by Rs 806. 

"As long as IndusInd Bank holds above the key support at Rs 728, the stock is well-positioned to achieve upside targets of Rs 782 and Rs 806 in the short term," it said. 
On Wednesday, the stock hit a high of Rs 759 and low of Rs 744.65.

On the fundamental side, Antique Stock Broking last week said that the normalisation of net non-performing asset (NPA) ratio is likely to result in muted FY26 earnings for IndusInd Bank. The domestic brokerage’s assessment follows an interaction with the head of investor relations at IndusInd Bank and incorporates a cautious approach for the upcoming quarters. The brokerage cut its target price on IndusInd Bank by 17 per cent to Rs 820 from Rs 985 earlier.  

The broking firm has cut its FY26, FY27, and FY28 pre-provision operating profit estimates for IndusInd Bank by 6–8 per cent due to the downward revision in growth estimates for FY26 and FY27 by roughly 150 basis points, resulting in flat YoY/11 per cent YoY growth, down from the earlier 1.5/12.5 per cent. PAT estimates, Antique said, have been cut by 53/12/12 per cent YoY, primarily due to normalisation of NNPA to 0.5 per cent levels by FY26 end versus earlier assumptions of gradual provisioning.