IndusInd Bank shares slip 4% to hover near 52-week level; which way is the stock headed?

Shares of IndusInd Bank Ltd continued to fall for the third consecutive session on Friday. The stock fell 3.53 per cent to settle at Rs 936.80. At this price, it has corrected 34.36 per cent in the last six months and 1.45 per cent away from its one-year low value of Rs 923.40, seen on January 27, 2025.

The private lender said it received approval from the Reserve Bank of India (RBI) to reappoint Sumant Kathpalia as its chief executive officer and managing director for a year. Separately, news agency Bloomberg, citing sources, reported that Nippon Life Insurance Co's India unit may be eyeing a minority stake in IndusInd Bank. However, Business Today could not independently verify this information at the time of publishing this story.

A market expert said traders with a long-term view and high risk-taking approach may accumulate the counter on dips. In contrast, a few opined that the near-term charts looked 'weak'.

"Long-term investors with a high-risk appetite can add this stock on dips," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"The stock looked weak on daily charts and can slip towards Rs 900 in the near term. On the higher end, resistance will be at Rs 960. Short-term investors can consider exiting at current levels," said Ravi Singh, Senior Vice-President of Retail Research at Religare Broking.

"IndusInd Bank has been one of the major underperformers, showing a significant divergence from its peers. The stock is currently near its 52-week low and is trading below all its major exponential moving averages (EMAs). A crucial support level is located around the Rs 910-900 zone. If this level is breached, the stock may decline further. On the upside, strong resistance is seen around the Rs 1,000-1,050 range. A sustainable breakout above this resistance could help the stock regain some momentum," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

Technically, the counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 32.84. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 10.10 against a price-to-book (P/B) value of 1.12. Earnings per share (EPS) stood at 92.75 with a return on equity (RoE) of 11.07.

As of December 2024, promoters held a 16.29 per cent stake in the lender.