Is IndusInd Bank a good pick?

Shares of IndusInd Bank have been rising for last three sessions. Over the last three days, the stock has gained by over 5 per cent. The stock has given a negative return of 27.73 per cent over the last year.

The short-term trend looks bullish, as the stock is trading above its 20-day EMA and close to its 50-day EMA. Meanwhile, the 14-period daily RSI is above 50 which mean the stock is witnessing buying activity. The daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

On the fundamental side, the bank is expected to see better growth in its Net Interest Margins (NIMs) post the merger with Bharat Financial. The synergies from the merger are expected to boost the bank’s rural penetration and the bank is expected to mark gradual decline in stress book.

The bank has able to increase its market share on account of addition to liability customer base and solid rise in average deposit balances. The management of IndusInd Bank is confident on asset quality with their exposures in sectors such as real estate, gems and jewellery are performing well.

On Monday, the stock of IndusInd Bank opened at Rs. 1,440.00 per share and made an intraday high and low of Rs. 1,458.40 and Rs. 1,431.35, respectively on the BSE. The stock closed at Rs. 1,438.65 on the BSE.