Indian Bank Technical Analysis Today – Paresh Gordhandas Power Call

CMP Rs. 982.75

Technical Structure
The stock is currently witnessing a strong momentum-driven rally with short-term, medium-term and long-term trends all aligned in a bullish structure. Price is trading decisively above all key moving averages including the 20DMA (898.09), 34DMA (879.34) and 50DMA (853.75), indicating powerful positional strength after a sustained breakout phase. The stock is also comfortably placed above the 89DMA (850.12) and 200DMA (742.13), reflecting strong institutional accumulation and a well-established long-term uptrend.

With the stock closing near its 52-week high of 986, the recent 1-week rise of over 10% and 1-year rally of nearly 90% highlight strong sectoral momentum within PSU banking space. Sustained higher highs and higher lows confirm continuation of the bullish structure with buying interest emerging on every decline.

Momentum & Indicator Analysis
Momentum indicators strongly favour the bulls but signal an overheated short-term setup. RSI at 70.04 has entered overbought territory, suggesting strong momentum but also indicating the possibility of brief consolidation before the next leg up. Stochastics (%K 96.93) and Williams %R at -2.62 show price trading near extreme zones, reflecting aggressive buying pressure.

MACD remains firmly positive with MACD (24.89) well above the signal line (17.71) and an expanding histogram, confirming strengthening upside momentum. ADX at 18.18 indicates a developing trend phase, while strong +DMI dominance (37.55 vs 16.36) signals buyers maintaining control. CCI at 188.66 reflects sharp price acceleration, while rising Momentum (106.30) supports continuation of bullish sentiment.

Volatility & Price Behaviour
The stock is trading above the upper Bollinger Band (Upper Band 966.04), indicating a momentum expansion phase and potential short-term overheating. Such positioning often leads to temporary sideways consolidation rather than immediate reversal. Parabolic SAR positioned at 863.37 remains well below the price, confirming continuation of the prevailing uptrend. ATR at 29.41 suggests moderate volatility, implying controlled price swings despite strong upward momentum.

Key Levels

Immediate Resistance: 995 – 1007 zone (R1 + Fibonacci cluster)
Major Resistance: 1041 – 1075 region (R3/R4 momentum zone)

Immediate Support: 973 – 961 band (Pivot to S1 zone)
Strong Positional Support: 940 – 905 region (S2 + Fibonacci cluster)

Trend Expectation
The overall technical structure remains strongly bullish with price sustaining above pivot levels and key averages. However, stretched momentum indicators suggest a phase of consolidation near the 973–995 range before a decisive breakout attempt. Holding above the pivot level of 973.60 will be crucial for continuation of the uptrend.

4–6 Week Positional Target (Power Calls View)

Primary Target Zone: 1040 – 1075
Extended Target (Momentum Continuation): 1100+

View invalidation may occur only if price sustains below 905, which would weaken the current bullish momentum and shift the structure toward deeper consolidation.

Paresh Gordhandas Technical View
Indian Bank is displaying strong price expansion backed by bullish moving average alignment and improving momentum structure. Persistent +DMI dominance and strong price behaviour near 52-week highs indicate continued buying interest, particularly in PSU banking counters. While short-term overheating may lead to consolidation or minor pullbacks, the broader technical bias remains constructive as long as price holds above the 961–973 support band.