₹100 stock on cusp of breakout, say analysts

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Rakesh Jhunjhunwala portfolio: Federal Bank shares are in uptrend for more than a month and the banking stock is about to give fresh breakout at 102 apiece levels. As the stock is available at an attractive discount, the banking stock is expected to emerge as bulls’ favourite in upcoming trade sessions. This Rakesh Jhunjhunwala stock is trading at a PE multiple, which is much lower than the industry PE.

According to stock market experts, Federal Bank shares have strong support at 95 apiece levels whereas it is facing immediate hurdle at 102 levels. Once, it breaks this hurdle and give fresh breakout, there can be some more upside expected in this Rakesh Jhunjhunwala stock.

Speaking on the chart pattern that may support Federal Bank share price ‘uptrend’; Rahul Sharma, Head of Technical Research at Equity99 said, “Federal Bank has capital adequacy ratio of 14.31 per cent with net NPA as low as 0.60 per cent. Company trades at a PE multiple of just 11 against industry’s PE multiple of 18.1. Its highly undervalued considering its market capital of 20,878 crore against huge EV of 1,85,519 crore. DII holds 41.66 per cent shares and FIIs hold 25.23 per cent stake in this bank.” He said that Federal Bank share is in uptrend as it is trading above all important Exponential Moving Averages (200, 100, 50) and Weighted Moving average of 89 days as well. MACD is above zero level and RSI showing strength as well.

Expecting fresh breakout in Federal Bank shares; Sumeet Bagadia, Executive Director at Choice Broking said, “Federal Bank is facing immediate hurdle at 102 and once it gives breakout at this level on closing basis, it may go up to 110 to 115 levels. After breakout, its immediate support will shift from 95 levels to 98 levels whereas immediate hurdle will shift towards 115 per share levels.”

Mehul Kothari, AVP – Technical Research at Anand Rathi Shares & Stock Brokers said, “On the upside; fresh momentum would commence above 106 levels and in that case the stock could be well prepared for 120 odd levels. On the downside; a dip towards 95 could be a good buying opportunity for positional investors.”

Rakesh Jhunjhunwala shareholding in Federal Bank

According to Federal Bank shareholding pattern for Q3FY22, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have investments in this south Indian bank. Rakesh Jhunjhunwala holds 5,47,21,060 shares or 2.64 per cent stake whereas Rekha Jhunjhunwala holds 2,10,00,000 Federal Bank shares, which is 1.01 per cent of the total issued paid-up capital of the bank. So, Jhunjhunwala couple holds 3.65 per cent stake in Federal Bank. Its shareholding pattern for January to March 2022 is awaited.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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