FEDS trade ideas
FEDERAL BANK reversal candidate in short termNSE:FEDERALBNK looking good for reversal after correction.
Closed just at Resistance zone. If sustains above resistance which is 190-192 can show Positive move till 195-198 in very short term.
above 198-200 zone stock will head towards new life time high and 1st levels will be 215-220.
very Short term support is at 187-188 and mid term support is 182.
No buy sell recommendation. trade with your own study and risk management
just for education purpose
Federal Bank - Expected Path (Sideways to Bullish)Stock looks to remain sideways to bullish for coming days
187.50 will act as small resistance for a few days
184.50 to act as support area
Stock to hover between these 2 points before breaking further and heading towards 193-95
FEDERAL BANK1.fib support,if it holds today low upper level can be seen.
2.fundamentally strong stock.
3.204,210 level can be seen further.
Description_just for educational purpose,i m not sebi registered,no buy or sell recommedndation.
Strongest Bank stock - Federal Bank- Buy.
1. Trend - UP.
2. Support - 200 was earlier acting as Resistance but now price is above 200 and this is now support.
Resistance -price is now making all time high, next major resistance will be 250 now.
3. Market conditions - BankNifty is showing reversal. Up move to 53000 is expected.
Federal Bank is strongest of banking stocks, so we will buy this to benefit from BankNifty up move.
4. Entry - Current Level - 202.
Target - 224, 249.
Federal Bank vs Karur Vysya Bank: Which is the bettr investment?The Bank Nifty NSE:BANKNIFTY stands at the 50,500 level, reflecting a decline of approximately 5.3% from its all-time high. When evaluating private banks, HDFC NSE:HDFCBANK , Axis NSE:AXISBANK , ICICI NSE:ICICIBANK , and Kotak Mahindra NSE:KOTAKBANK typically emerge as top contenders for investment. However, in the mid to small-cap arena, Federal Bank and Karur Vysya Bank have shown remarkable resilience and performance over the past few months, outpacing the broader banking sector. Let’s delve into some crucial factors that can guide us in determining the most promising investment opportunity at this moment!
Market Capitalization
● Federal Bank NSE:FEDERALBNK - ₹ 49,883 Cr.
● Karur Vysya Bank NSE:KARURVYSYA - ₹ 17,459 Cr.
Relative Strength
● The chart clearly illustrates that the Bank Nifty has delivered an impressive return on investment of approximately 15% over the past year. However, Federal Bank and Karur Vysya Bank have far surpassed this figure, achieving remarkable returns of around 54% and 82%, respectively. This indicates that these two banks are currently excelling far beyond the overall bank index.
Cost of Liabilities
● The liabilities cost for Karur Vysya Bank is at 4.8%, notably lower than Federal Bank's 5.14%. This indicates that Karur Vysya Bank has a greater ability to secure funds compared to Federal Bank.
CASA Ratio
● The CASA ratio, which measures the proportion of deposits in current and savings accounts to total deposits, is a crucial indicator for banks. A higher CASA ratio signifies a reduced cost of funds, as banks typically do not pay interest on current account deposits, and the interest rates on savings accounts are generally quite low, around 3-4%.
● In this instance, the CASA ratios stand at 30.39% for Karur Vysya Bank and 29.56% for Federal Bank, highlighting Karur Vysya Bank's superior position over Federal Bank.
Non-performing Asset (NPA) Analysis
● Over the past four years, the net non-performing assets (NPA) for these two banks have seen a remarkable decline.
● In the latest quarter, Karur Vysya Bank reports a net NPA of just 0.4, while Federal Bank follows closely with a net NPA of 0.6.
Total Provisions
● Discussing the NPA without considering the overall provisions presents an incomplete picture. Both banks have experienced a notable decline in this crucial factor.
● For Federal Bank, the total provisioning for FY24 is only 196 crore, a stark reduction from 750 crore in FY23. Similarly, Karur Vysya Bank's total provisioning for FY24 stands at 728 crore, down from 1,039 crore in FY23.
Net Interest Margins (NIM)
● Karur Vysya Bank boasts a superior net interest margin (NIM) of 3.75, significantly outpacing the Federal Bank's NIM of 2.87.
● A NIM below 3 is generally viewed as unfavorable for banks. highlighting the strength of Karur Vysya Bank in this key metric.
Advances Growth (%) Analysis
● An increase in advances growth signifies a bank's ability to efficiently provide loans. The 20.4% rise in advances for Federal Bank surpasses the 16.68% growth seen at Karur Vysya Bank, showcasing a more robust lending capability.
Valuation
● PE Ratio
➖Federal Bank's current price-to-earnings (PE) ratio is 12.4, which exceeds its 1-year median PE of 9.0. Compared to the industry average PE of 11.83, this suggests that the stock is not excessively overvalued.
➖On the other hand, Karur Vysya Bank has a current PE of 10.2, which is marginally above its 1-year median PE of 9.8. Given the industry PE of 11.83, this indicates that Karur Vysya Bank is significantly undervalued.
➖When analyzing the PE ratios, it becomes clear that Karur Vysya Bank holds a more advantageous position.
● Intrinsic Value
➖The Federal Bank is currently trading at ₹204, while its intrinsic value stands at ₹228, indicating that the stock is undeniably undervalued at this time.
➖On the other hand, Karur Vysya Bank's market price is ₹217, but with an intrinsic value of only ₹146, it clearly shows that the stock is currently overvalued.
Technical Aspects
● From a technical standpoint, both stocks exhibit a similar pattern and appear to be currently overextended. Any pullbacks could provide a valuable opportunity to take positions.
Conclusion
● Upon evaluating all the key factors, it is evident that Karur Vysya Bank NSE:KARURVYSYA is in a more advantageous position than Federal Bank NSE:FEDERALBNK ; however, this does not imply that Federal Bank is struggling. Both banks offer promising investment prospects. As the economy grows, a fundamentally strong bank is expected to consistently surpass the overall banking sector.
Federal Bank : Breakout Buy Federal Bank at 159 with sl 150 tgt 176
Put Stoploss on closing basis.
(In Trading Time it may go above/below stoploss But closing price is most important).
These are levels are generated on the basis on Fibonacci Series
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades. Please understand Risk in trading before taking any trade with your financial consult. I am only sharing my knowledge it may be right or sometimes wrong so I am not liable for any loss.
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Federal Bank - LongFederal Bank
On a monthly time frame it's forming a Pole & Flag pattern.
Technical Target = 185+
SL= ~120
FEDERALBANK 75 min Although price reacted from this level but it made a new high & also coinciding with put OI @185
FEDERALBNK following the channel The federal bank follows the parallel channel in 1D TF so the chance is very high to touch the upper channel and go down that's why here I'm in support of the short position and if you want to go a long wait for the channel breakout after the breakout and its retest I change my position short to long.
Federal BankFederal Bank
Time frame - Monthly
Study - Inverted Head and Shoulder Pattern, Also good volume ticks seen on monthly chart.
Daily Chart - Breakout given above 128
Fundamentals - Maximum profit gained all time high
Buy Range - 110-120
Target - 200 ++
SL - 82
This chart is for only educational purpose
FEDERAL BANK - Swing Trade Analysis - 5th June #stocksFEDERAL BANK (1D TF) - Swing Trade Analysis given on 5th June, 2024
Pattern: ASCENDING TRIANGLE
- Volume Buildup at Resistance - Done ✓
- Resistance Breakout - In Progress
- Demand Zone Retest & Consolidation - In Progress
* Disclaimer
FEDERALBNK Risk : Reward is very favorable for buying FEDERALBNK Risk : Reward is very favorable for buying
as curve support is act like a gods line of control
if this time also act like previously than
Risk : Reward is very very favorable for buying
stop loss around 120 for this trade
target sky is the no limit
FEDERALBNK long above 165.25RS indicator turning positive
Sector is also strong
RSI giving trendline breakout
Volatility contraction in last few days
breaking of 165.25 levels might result in tgts above 168
Federal Bank !!!.Federal Bank is now bouncing back. The counter has made a strong support of trendline and do not break it since March 2024. This time also it bounced back from the trendline. The CMP is 160 around. Buy for short swing of 165 of the first target and 170-172 for the 2nd target.
#Federalbank cash : Looks good above 162.50#FederalBank cash -Positional call
29.04.2024
Looks good above 162.50
more above 166.10
Tgt 178-180/194
SL 150
Cmp 160.45
Federal Bank Bullish viewEntering again in the trade. Last time SL got hit. Quite positive this time.
Cup and handle is getting formed in Federal Bank. Entering the trade before the formation of handle as risk reward ratio is good. Final target is of 167.
Disclaimer: All my ideas are strictly for educational purpose. I am not responsible for your profit or loss. Pls do your analysis before entering into any trade.
FederalBank Bullish ViewCup and handle is getting formed in Federal Bank. Entering the trade before the formation of handle as risk reward ratio is good. Final target is of 167.
Disclaimer: All my ideas are strictly for educational purpose. I am not responsible for your profit or loss. Pls do your analysis before entering into any trade.
Federal bankenter 130-135..... add 100 .. every 20 pts drop is an addition so manage positions accordingly.
No SL and positional pick. No short term targets defined.
Federal Bank Ltd. ( potential to break its all time high again)
Sector: Bank - Private
monthly chart shows strong uptrend n PA in monthly demand zone
weekly chart shows PA in demand zone which is resistance zone previously
daily chart shows accumulation @ bottom....
swing trade for 1 monthTechnical Analysis for Federal Bank:
Stock Name: Federal Bank
Chart Pattern: Breakout of channel
Trade Duration: Swing trade for 1 month
Entry: Buy on current market price (CMP) at ₹164.7
Stop Loss: ₹10
Target: ₹20
Volume: Huge volumes and good closing on Friday
