The analyst believes the company’s robust fundamentals, combined with strong technical indicators like RSI and MACD, point towards a sustained bullish run

Kotak Mahindra Bank’s technical indicators on daily charts and strong fundamentals point towards a potential bullish run, according to SEBI-registered analyst Deepak Pal.

He believes that Kotak Mahindra Bank could potentially see a pullback rally towards ₹2,175 in the near term if domestic sentiment improves and global geopolitical tensions ease.

The stock’s movement in comparison to its exponential moving averages (EMA) indicates positive momentum, he said. It is finding consistent support at its 55-day EMA and closed well above its 14-day EMA on Monday.

Although the stock declined over the following two sessions this week, it consistently closed above its intra-day lows, reflecting underlying buying interest around its short-term support zone, Pal noted.

Its bullish momentum is further supported by key technical indicators like relative strength index (RSI) and moving average convergence/divergence (MACD), which are used to determine potential buy or sell signals.

He observed that the RSI is moving upward, and the MACD has formed a positive crossover, both signaling growing upside strength.

Pal sees support at the ₹2,080-₹2,090 levels, indicating buying interest.

The kotak bank shares reported a 25% year-on-year increase in FY24 net profit at ₹14,500 crore. It maintains a healthy 5.3% net interest margin, low gross and net NPAs of 1.7% and 0.4% respectively, and a strong CASA ratio of 47%.

Pal highlighted that the bank’s loan portfolio is well-diversified across retail, corporate, and SME segments. He believes that with solid fundamentals and a trusted legacy, Kotak Bank is well-positioned to deliver consistent long-term performance. 

At the time of writing, the stock was up 0.5% at ₹2,144.6, and has gained over 20% year-to-date (YTD).

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