AAVAS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.1

📊 Chart Patterns & Trend: AAVAS is trading below both its 50 DMA (1,589 ₹) and 200 DMA (1,692 ₹), indicating weakness and a bearish undertone. Price action shows the stock consolidating near 1,450–1,500 ₹ after a steep correction from highs of 2,238 ₹, with support at 1,435 ₹.

📈 Moving Averages: Current price (1,465 ₹) is below both moving averages, signaling short-term and medium-term weakness.

📉 RSI: At 34.4, RSI is near oversold territory, suggesting potential for a short-term bounce.

📊 MACD: Negative MACD (-35.2) confirms bearish momentum, highlighting caution for traders.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A bounce is possible if buying interest emerges.

📊 Volume Trends: Current volume (2.25L) is below 1-week average (3.24L), showing weak participation and lack of conviction in recent moves.

🎯 Entry Zone: 1,440–1,470 ₹ (near support and oversold RSI).

🚪 Exit Zone: 1,580–1,600 ₹ (resistance near DMA levels).

⚠️ Stop Loss: 1,420 ₹ (below recent support).

📌 Overall Trend: Consolidating with bearish bias. A reversal requires sustained move above 1,580 ₹ with strong volume.

Positive

• Quarterly PAT growth (139 Cr. → 164 Cr.).
• EPS of 76.2 ₹ indicates earnings stability.
• DII holding increased by 2.61%.
• PEG ratio of 1.12 suggests reasonable valuation relative to growth.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• High debt-to-equity ratio (3.08).
• Dividend yield of 0.00% offers no income cushion.
• Weak ROCE (10.1%) and ROE (14.1%).
• Volume participation is weak, limiting breakout potential.

Company Negative News

• FII holding reduced significantly (-3.89%).
• MACD negative, confirming short-term bearish momentum.

Company Positive News

• Quarterly profit growth of 10.8% shows operational improvement.
• DII holding increased (+2.61%), indicating domestic investor confidence.

Industry

• Industry PE at 18.0, slightly lower than company’s P/E of 19.3.
• Housing finance sector remains competitive with moderate growth outlook.

Conclusion

⚖️ AAVAS is consolidating near strong support levels with RSI suggesting potential rebound. Entry near 1,440–1,470 ₹ offers limited upside unless price breaks above 1,580–1,600 ₹ with strong volume. Fundamentally stable but technically weak, making cautious accumulation advisable.