Shares of Federal Bank Ltd were trading in the red, losing over 3%, in Wednesday's session due to profit-booking. The bank reported a healthy Q4FY23 operational performance on Monday.
Analysts see weakness in the counter and anticipate a continued downward trend for the stock.
According to the latest exchange filing, the bank’s gross advances grew by 20.2% on year to ₹1,77,480 crore from ₹1,47,639 crore. As per internal classification, retail credit book grew by 18.6% and wholesale credit book grew by 22.2%. Retail to wholesale ratio is at 54:46 respectively.
The total deposits reached ₹2,13,384 crore, with a growth of 17.4% over ₹1,81,701 crore as of March 31, 2022. Current Account and Savings Account (CASA) deposits were up 3.9% year-on-year (YoY) to ₹69,739 crore and CASA ratio was at 32.7% versus 34.2% in Q3FY23 and 36.9% in Q4FY22.
On Wednesday, the stock hit an intraday low of ₹128.20 and high of ₹133.45. Over a period of three months, the stock has lost 6.2%. The stock's weekly average delivery volume is 51.76%.
"We are seeing weakness in this counter, and further downside can be possible; 125 is a sacrosanct support and existing longs should be held with the same. If 125 is broken on a closing basis then the downtrend would start dragging prices towards 115; immediate resistance is at 135, only above this momentum on the positive side would resume," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
According to a MintGenie poll, 28 analysts on an average recommend 'strong buy' for the stock.
