Indusind Bank Ltd (NSE:INDUSINDBK) Meets Expectations, Shares Collapse

Indusind Bank Ltd NSE: INDUSINDBK was one of the biggest losers during the day on the back of lacklustre results. Shares of the company were lower by close to 2% on the back of heavy volumes which is being seen as a huge negative by traders on the street. The stock was one of the biggest decliners on the NSE Nifty Bank index intra-day today. Analysts on the street have high expectations from the growth prospects for the private banking space after a spate of scams coming out from the Public Sector banks have led to a portfolio shift towards private sector banks like Indusind Bank.

Indusind Bank Ltd NSE: INDUSINDBK reported a 27% rise in profit year on year of Rs. 953crores as against analyst expectations of a net profit of 955crores. Gross NPA of the bank stood at Rs 1,704.91 crore for the March quarter against Rs 1,498.7 crore in December. The company also declared a dividend of Rs. 7.50/- per share for the current year which is being seen as a positive. It is imperative to state that most figures reported by the bank were in line with street expectations. The company also reported that there was a divergence of Rs. 1,350 crores as against RBI estimates which is being seen as a negative and has led to the correction in the stock price of the company. Analysts on the street would also be wanting to learn about the total exposure that the bank has towards the gems and jewellery sector after the Nirav Modi-PNB scam.

On the charts, the stock for Indusind Bank Ltd NSE: INDUSINDBK has been in a strong uptrend and continues to trade above both its 50 day and 200 day moving averages which is being seen as a huge positive by traders. The RSI for the stock has given a sell signal on the back of the price action today and many believe the stock could head lower in the coming sessions. Analysts believe the stock could head to levels of Rs.1788 post the sell off the stock has witnessed post the results today. The stock continues to see resistance emerge at levels of Rs.1880 which is also the 52-week high for the stock.

On the options front Indusind Bank Ltd NSE: INDUSINDBK continues to see huge open interest buildup at the 1900 Call which many believe would be a resistance. On the put side 1800 put continues to see highest open interest which is indicative of the strong support at those levels.