Indian Overseas Bank shares continue stellar show, zoom 46% in four sessions. Here are tech levels to watch

Shares of Indian Overseas Bank extended their sharp gains for the fourth consecutive session. The stock on Monday rallied 20 per cent to hit a one-year high price of Rs 47.40. At this price, it has surged 46.16 per cent in just four days. The scrip eventually settled 14.43 per cent higher at Rs 45.20. On BSE, around 2.45 crore shares changed hands today. The figure was way more than the two-week average volume of Rs 70.59 lakh shares. Turnover on the counter stood at Rs 109.98 crore, commanding a market capitalisation (m-cap) of Rs 85,438.90 crore.

Technical analysts remained divided on the counter. Support level could be seen at Rs 39.9.

AR Ramachandran from Tips2trades said, "Indian Overseas Bank looks very overbought yet bullish with next resistance at Rs 52.9. Investors should be booking profits at current levels as a daily close below support of Rs 39.9 could lead to Rs 32 in the near term."

Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "On the daily charts, the stock has given a fresh breakout above Rs 37 price. Technical indicator are still in bullish mode. Investors can hold this stock with a stop loss of Rs 38 for a target of Rs 62."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving average (SMAs). The counter's 14-day relative strength index (RSI) came at 83.34. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 33.83 against a price-to-book (P/B) value of 2.96.

The scrip has a one-year beta of 1.29, indicating high volatility.

The state-owned lender posted a 28 per cent increase in net profit at Rs 500 crore during the June quarter (Q1 FY24), mainly due to a decline in bad loans. The Chennai-based bank had posted a net profit of Rs 392 crore in the year-ago period.

The total income in Q1 FY24 rose to Rs 6,227 crore against Rs 5,028 crore. The lender's interest income also increased to Rs 5,424 crore in the June quarter from Rs 4,435 crore in the same period a year ago.

On the asset quality side, the bank witnessed an improvement as gross non-performing assets (NPAs) eased to 7.13 per cent of the gross advances by June 2023 compared to 9.12 per cent a year ago.

Meanwhile, Indian equity benchmarks settled lower today, dragged by technology, metal and financial stocks. The 30-share BSE Sensex pack slipped 242 points or 0.36 per cent to close at 67,597, while the broader NSE Nifty index moved 59 points or 0.29 per cent down to end at 20,133.

Also Read | Jupiter Life Line shares rally after strong listing; should you hold or book profits?

Also Read | ICICI Pru, CAMS, Bank of India among 5 stocks that analysts suggest for short term

Also Read | Zaggle Prepaid Ocean IPO sails through on day 3; bidding for issue closes today