CSB Bank shares rise 4% today; can they revisit their 52-week high level of Rs 275 in near term?

Shares of CSB Bank jumped 4.19 per cent to hit a day high of Rs 256.15 in Monday's trade. At today's high price, the stock traded 6.86 per cent lower from its 52-week high of Rs 275, a level seen on December 19 last year. That said, the scrip has gained 43.91 per cent from its one-year low level of Rs 178, hit on June 20, 2022.

The lender, in an exchange filing, said it has reported a 21.39 per cent rise in the total deposits for the quarter that ended March 2023 (Q4 FY23). The deposits came at Rs 24,505.80 crore against Rs 20,188.30 crore in the same period a year ago.

The CASA (Current Account and Savings Account) and term deposits increased by 16.06 per cent and 24.09 per cent, respectively. The gross advances jumped 30.28 per cent to Rs 20,841.66 crore in Q4 FY23.

On a sequential basis, the bank's gross advances rose 11.75 per cent from Rs 18,650.65 crore in Q3 FY23, provisional data showed.

In addition, Karnataka Bank said it has crossed the 700 branches-mark. The bank has opened 100 branches each in three consecutive financial years (FY 2021, FY 2022 and FY 2023), it added.

Analysts largely suggested that the stock can revisit its one-year high level only if it manages to close above the resistance of Rs 260. Support on the counter could be seen at Rs 235, followed by Rs 237 level.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, "The stock has immediate support placed around Rs 235-odd level, followed by sacrosanct support of 200-SMA (Simple Moving Average) placed around Rs 225. On the flip side, the immediate resistance can be seen around Rs 260-odd level, followed by the recent swing high of Rs 275 in a comparable period."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "For the last few sessions, the said counter has seen nice buying interest with the 12-day and 26-day moving averages sloping upward, hinting towards a bullish stance in the counter. Thus, one can buy in the range of Rs 243-250 with an upside target of Rs 275 and a stop-loss would be Rs 230 on a daily close basis."

AR Ramachandran from Tips2trades said, "Rs 255-260 is a strong resistance zone for CSB Bank on the daily charts. A close above this resistance could lead to a target of Rs 275 in the near term. Support will be at Rs 237."

CSB Bank has an average target price of Rs 317.67, Trendlyne data showed, suggesting a potential upside of 26.23 per cent. The stock has a one-year beta of 0.78, indicating low volatility.

The stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 59.06. 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 8.18.

Meanwhile, Indian equity benchmarks traded lower in late morning deals amid a highly volatile session, dragged by consumer goods, technology and metal stocks.

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