Kotak Bank Sinks On Q1 Margin Pressure; SEBI Analysts Caution On Weakness Ahead, ₹2,115 Emerges As Crucial Support
Synopsis
The stock is trading near a key support zone, with price compression and low volumes pointing to a potential breakdown or reversal.
Kotak Mahindra Bank shares fell over 6% on Monday following its weaker-than-expected June quarter (Q1) results and tightening price action near key technical levels.
The bank reported a 9% year-on-year rise in standalone net profit to ₹4,034 crore, aided by lower provisions. Net interest income (NII) grew 2% to ₹6,299 crore, while net interest margin declined to 5.08% from 5.57% a year ago due to funding cost pressures.
Asset quality improved, with gross non-performing assets (NPAs) at 1.39% versus 1.77% a year earlier. Advances grew 16% year-on-year, supported by steady loan book expansion across segments.
At the time of writing, shares of Kotak Mahindra Bank were trading at ₹1,987.5, down 6.5% on the day.
SEBI-registered analyst Vijay Kumar Gupta said short-term weakness is emerging post-earnings, with the stock approaching a crucial support zone that could lead to a decisive move.
Meanwhile, SEBI-registered investment advisor Financial Independence rated the quarter as “Neutral,” citing that while profit grew and asset quality improved, muted NII growth and margin pressure limit near-term upside.
The firm noted management’s focus on cost control and steady credit growth.
Gupta highlighted ₹2,115 as a critical immediate support near the 200-day moving average. A breakdown below this level may trigger declines toward ₹2,058 or even ₹2,000.
On the upside, resistance is seen at ₹2,180 and ₹2,204, with a potential target of ₹2,276–₹2,281 if a breakout occurs.
He added that the price is compressing between ₹2,115 and ₹2,180, with repeated rejection near ₹2,204, and low volumes indicating a lack of buyer conviction.
The stock has underperformed peers, with rebounds being sold into.
A bullish reversal would require a sustained move above ₹2,204, while a breakdown below ₹2,115 could lead to further downside.
On Stocktwits, retail sentiment was ‘bearish’ amid ‘high’ message volume.
The stock has risen 11.1% so far in 2025.
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