AU Small Finance Bank Q2 profit up 52.9%, trend bearish

AU Small Finance Bank Limited posted a 52.9% rise in Q2 profit to Rs 858 crore. The stock is below its 200-day average, with support at Rs 860 and Rs 1,035. AU Small Finance Bank Limited [

] reported a 52.9% rise in Q2 FY27 profit on 24 October. The stock had closed down 2.20% at Rs 932.90 on Friday, its fifth straight negative close. Net profit rose to Rs 858 crore from Rs 561 crore a year earlier. Net interest income grew 31.5% to Rs 2,820 crore, with net interest margin at 5.8%. Gross NPA eased to 1.99% from 2.41%. Deposits grew 29% and loans grew 25%. The numbers are strong, but the price has been weak into the results, so the first reaction needs watching. On the daily chart, the stock hit a 52-week high in late August and has since formed lower highs and lower lows. It has broken the Rs 941 support, a long rising trend line and the 200-day average of Rs 1,035. The RSI reads 31.96, near the low zone. In my view, the trend is bearish. Rs 860 is now the key support, and a fall below it would put lower levels in view. The Rs 1,035 area, where the average and broken trend line meet, is the key resistance. Bearish view while price trades below Rs 1,035. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.