AAVAS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | AAVAS | Market Cap | 8,926 Cr. | Current Price | 1,127 ₹ | High / Low | 2,238 ₹ |
| Stock P/E | 14.2 | Book Value | 591 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 1,314 ₹ | DMA 200 | 1,532 ₹ |
| Chg in FII Hold | -1.16 % | Chg in DII Hold | 0.17 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 164 Cr. |
| RSI | 25.2 | MACD | -59.3 | Volume | 5,35,523 | Avg Vol 1Wk | 3,58,959 |
| Low price | 1,096 ₹ | High price | 2,238 ₹ | PEG Ratio | 0.83 | Debt to equity | 3.08 |
| 52w Index | 2.76 % | Qtr Profit Var | 16.1 % | EPS | 79.2 ₹ | Industry PE | 14.1 |
📉 Chart & Trend: Current price (1,127 ₹) is below both 50 DMA (1,314 ₹) and 200 DMA (1,532 ₹), confirming a strong downtrend.
📊 RSI: At 25.2, RSI is oversold, suggesting weak buying strength but potential for a short-term bounce.
📉 MACD: Negative (-59.3), showing bearish crossover and weak momentum.
📈 Bollinger Bands: Price is near the lower band, indicating oversold conditions but no confirmed reversal yet.
📉 Volume: Current volume (5,35,523) is higher than 1-week average (3,58,959), showing increased participation, likely driven by selling pressure.
📍 Support Levels: 1,100 ₹ (near-term), 1,050 ₹ (major support), 1,096 ₹ (52-week low).
📍 Resistance Levels: 1,200 ₹ (near-term), 1,300 ₹ (major resistance), 1,532 ₹ (200 DMA resistance).
🔎 Momentum Signal: Weak short-term momentum, oversold but still bearish.
📌 Trend Status: Reversing downward with risk of further decline if support breaks.
Positive
- Quarterly profit growth (PAT up from 164 Cr. to 170 Cr., +16.1%).
- EPS of 79.2 ₹ reflects strong earnings power.
- PEG ratio (0.83) indicates reasonable valuation relative to growth.
Limitation
- Stock trading well below both 50 DMA and 200 DMA, confirming bearish trend.
- No dividend yield (0.00%), offering no income support.
- 52-week index performance only 2.76%, showing very weak relative strength.
- High debt-to-equity ratio (3.08) raises leverage concerns.
Company Negative News
- FII holding reduced (-1.16%), showing declining foreign investor confidence.
- ROCE (10.1%) is weak compared to peers, indicating efficiency concerns.
Company Positive News
- DII holding increased (+0.17%), reflecting domestic institutional support.
- Quarterly profit growth signals operational improvement despite weak trend.
Industry
- Industry P/E at 14.1 is slightly lower than company’s P/E (14.2), suggesting fair valuation.
- Housing finance sector remains supported by credit demand and policy tailwinds.
Conclusion
⚠️ AAVAS is in a bearish reversal, trading below key moving averages with negative MACD and oversold RSI. Entry is only favorable near strong support zones (1,100–1,120 ₹) with strict stop-loss at 1,050 ₹. Exit zones lie around 1,200–1,300 ₹ if momentum recovers. Fundamentals show profit growth and reasonable PEG ratio, but high debt and weak ROCE raise caution. Short-term traders should wait for confirmation signals before entry; long-term investors may accumulate gradually only if earnings stabilize and leverage reduces.