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AAVAS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.1

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.1

Stock Code AAVAS Market Cap 11,459 Cr. Current Price 1,447 ₹ High / Low 2,238 ₹
Stock P/E 19.0 Book Value 591 ₹ Dividend Yield 0.00 % ROCE 10.1 %
ROE 14.1 % Face Value 10.0 ₹ DMA 50 1,497 ₹ DMA 200 1,632 ₹
Chg in FII Hold -1.16 % Chg in DII Hold 0.17 % PAT Qtr 164 Cr. PAT Prev Qtr 139 Cr.
RSI 45.5 MACD -8.59 Volume 45,512 Avg Vol 1Wk 1,16,140
Low price 1,351 ₹ High price 2,238 ₹ PEG Ratio 1.10 Debt to equity 3.08
52w Index 10.8 % Qtr Profit Var 10.8 % EPS 76.2 ₹ Industry PE 16.4

📊 Technical Analysis

  • Chart Patterns: Current price (1,447 ₹) is below both 50 DMA (1,497 ₹) and 200 DMA (1,632 ₹), showing weak technical structure and bearish bias.
  • RSI (45.5): Neutral zone, leaning towards weakness, suggesting limited momentum.
  • MACD (-8.59): Negative crossover confirms short-term bearish momentum.
  • Bollinger Bands: Price near lower band, indicating oversold conditions with potential for a short-term bounce.
  • Volume Trends: Current volume (45K) is well below 1-week average (1.16L), reflecting weak participation and lack of conviction.

📈 Momentum & Signals

  • Trend: Bearish consolidation.
  • Support Zones: 1,430 ₹ (near-term support), 1,351 ₹ (recent low), 1,300 ₹ (major support).
  • Resistance Zones: 1,497 ₹ (50 DMA), 1,632 ₹ (200 DMA), 1,700 ₹ (psychological resistance).
  • Entry Zone: 1,420–1,450 ₹ for cautious accumulation.
  • Exit Zone: 1,500–1,550 ₹ unless breakout above 1,632 ₹ occurs.

✅ Positive

  • Quarterly PAT improved to 164 Cr. from 139 Cr. (+10.8%).
  • EPS of 76.2 ₹ supports earnings visibility.
  • DII holding increased (+0.17%), showing domestic institutional support.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, confirming bearish technical setup.
  • High debt-to-equity ratio (3.08) indicates leveraged balance sheet.
  • ROCE (10.1%) is modest compared to peers.

📉 Company Negative News

  • FII holding decreased (–1.16%), showing reduced foreign investor confidence.
  • Weak 52-week performance (Index 10.8%), reflecting poor relative strength.

📈 Company Positive News

  • Quarterly profit growth highlights operational improvement.
  • Stock remains above 52-week low (1,351 ₹), showing resilience despite weak momentum.

🏭 Industry

  • Industry P/E at 16.4 is lower, highlighting AAVAS’s premium valuation.
  • Housing finance sector benefits from rising demand for affordable housing and government incentives.

🔎 Conclusion

  • Stock is in bearish consolidation.
  • RSI neutral but MACD negative suggests caution; momentum remains weak.
  • Best strategy: Buy near 1,420–1,450 ₹ with stop-loss below 1,351 ₹.
  • Upside potential towards 1,500–1,550 ₹ if momentum sustains and breakout above 1,632 ₹ occurs.

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