Kotak Mahindra Bank share price hits a 52-week high amid a stock market crash; is it a stock to buy?
Kotak Mahindra Bank shares reached a 52-week high of ₹1,969.90 during intraday trading on February 11, despite a broad market selloff.
Amid a broad-based selloff, Kotak Mahindra Bank shares hit a 52-week high in intraday trading on the BSE on Tuesday, February 11. Kotak Mahindra Bank share price opened at ₹1,969.90 against its previous close of ₹1,959.45 and rose 0.53 per cent to the 52-week high of ₹1,969.90. The stock, however, witnessed profit booking soon after hitting a one-year high and closed 2.15 per cent lower at ₹1,917.35.
Kotak Mahindra Bank share price trend
Kotak Mahindra Bank has posted steady gains since November last year, defying weak market sentiment. The stock has closed in the green every month since November, rising 11 per cent overall, while the Sensex has declined 4 per cent during the same period.
Kotak Mahindra Bank Q3 result
Kotak Mahindra Bank's profit after tax (PAT) rose 10 per cent year-on-year (YoY) to ₹4,701.02 crore in Q3FY25 against ₹4,264.78 crore in the corresponding period of the previous financial year.
However, Kotak Mahindra Bank's total income decreased to ₹23,945.79 crore from ₹24,083.15 crore in Q3FY24.
Kotak Mahindra Bank: Should you buy the stock?
Several experts and brokerage firms expressed their positive views on Kotak Mahindra Bank stock after the company's Q3 earnings, even though the banking major reported increased slippages and credit costs.
Abhishek Pandya, a research analyst at StoxBox, pointed out that Kotak Mahindra Bank (KMB) delivered a steady performance in Q3FY25, with net profit rising and notable improvement in net interest margins (NIMs), contrasting with the compression observed among its peers. However, rising slippages and increased credit costs indicate potential challenges, particularly in the unsecured and microcredit portfolios, necessitating vigilant oversight.
Pandya added that the bank has strategically shifted its focus toward lending in secured segments such as loan against property (LAP) and home loans, which enhances portfolio stability and mitigates credit risk.
"Overall, Kotak Mahindra Bank posted a decent performance in Q3FY25. As a result, we are positive about the stock from a medium- to long-term perspective. Further, its long-term success in sustaining credit growth and profitability will hinge on its management's ability to navigate market challenges and implement strategies that balance growth with financial prudence in an evolving economic landscape," said Pandya.
A heavyweight banking stock appears to be an attractive long-term buy.
However, some technical experts believe one may consider booking some profits in the stock at this juncture. However, investors may also consider buying the stock on dips even they have long-term investment horizon.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, observed that on the monthly chart, Kotak Mahindra Bank is trading above the Ichimoku cloud, indicating a strong long-term bullish trend. However, in the short term, it trades below the R4 Camarilla yearly pivot, which acts as a resistance level and raises caution. Additionally, the future Ichimoku cloud remains red, as depicted in the chart, suggesting possible weakness and a potential pullback towards 1800 levels.
From a momentum perspective, the Stochastics indicator on the monthly timeframe is still below the overbought zone, reinforcing the short-term bearish outlook. Patel said this indicates that the stock may face near-term pressure while the long-term structure remains positive.
"Given these factors, it is advisable to book profits on any bounce rather than chasing further upside in the immediate term. Monitoring price action near key levels will be crucial for the next move," said Patel.
Hardik Matalia, a derivative analyst at Choice Broking, believes Kotak Mahindra Bank remains a strong buy on dips, with an overall bullish outlook.
Matalia underscored the stock is exhibiting strong bullish momentum. It has broken out of a consolidation phase and is now trading above key moving averages, indicating further upside potential. With strong buying interest, it has successfully surpassed the crucial resistance level of ₹1,900, which now acts as immediate support.
He highlighted that the stock is trading above the short-term (20-day), medium-term (50-day), and long-term (100-day) EMAs, reinforcing a sustained bullish trend. The Relative Strength Index (RSI) is trending upwards at 56, reflecting strong buying interest. Additionally, the recent breakout is backed by a surge in trading volume, further confirming bullish strength.
"Key levels to watch include ₹1,900 as immediate support, followed by ₹1,850, while resistance levels are seen at ₹2,000 and ₹2,050. For short-term traders, buying near ₹1,920 with a stop-loss at ₹1,850 is advisable to manage risk effectively. If momentum sustains, an upside target of ₹2,050 can be expected," said Matalia.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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