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ABCAPITAL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

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

Technical Rating: 3.7

Stock Code ABCAPITAL Market Cap 87,188 Cr. Current Price 333 ₹ High / Low 369 ₹
Stock P/E 30.4 Book Value 103 ₹ Dividend Yield 0.00 % ROCE 9.48 %
ROE 12.5 % Face Value 10.0 ₹ DMA 50 345 ₹ DMA 200 297 ₹
Chg in FII Hold -0.95 % Chg in DII Hold 1.85 % PAT Qtr 916 Cr. PAT Prev Qtr 676 Cr.
RSI 32.6 MACD -3.07 Volume 41,85,780 Avg Vol 1Wk 52,25,753
Low price 149 ₹ High price 369 ₹ PEG Ratio 0.29 Debt to equity 4.56
52w Index 83.6 % Qtr Profit Var -11.2 % EPS 11.0 ₹ Industry PE 22.6

📈 Technical Chart Analysis

  • Moving Averages: Current price (333 ₹) is below 50 DMA (345 ₹) but above 200 DMA (297 ₹), showing consolidation with mild bearish bias.
  • RSI: At 32.6, the stock is oversold, suggesting potential rebound opportunities.
  • MACD: Negative (-3.07), confirming bearish crossover and weak momentum.
  • Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term bounce.
  • Volume Trends: Current volume (41,85,780) is lower than 1-week average (52,25,753), showing reduced participation and weak conviction.

📊 Momentum & Trend Signals

  • Short-term Momentum: Bearish bias due to negative MACD and weak volume.
  • Support Zone: 325–330 ₹ (near recent lows and psychological support).
  • Resistance Zone: 345–360 ₹ (near 50 DMA and psychological round level).
  • Optimal Entry: Around 328–333 ₹ if RSI remains oversold and support holds.
  • Optimal Exit: 350–360 ₹ if price rebounds to moving averages.
  • Trend Status: Currently consolidating with bearish undertone; reversal possible if RSI triggers bounce and volume improves.

✅ Positive

  • DII holding increased significantly (+1.85%), showing strong domestic institutional confidence.
  • Quarterly PAT improved from 676 Cr. to 916 Cr., showing earnings growth.
  • PEG ratio of 0.29 suggests undervaluation relative to growth.
  • Strong 52-week performance (+83.6%) shows resilience despite recent correction.

⚠️ Limitation

  • High debt-to-equity ratio (4.56) adds significant financial risk.
  • Weak ROCE (9.48%) and moderate ROE (12.5%) highlight modest capital efficiency.
  • Dividend yield is 0%, offering no passive income to investors.
  • P/E of 30.4 is higher than industry average (22.6), suggesting overvaluation.

📉 Company Negative News

  • FII holding declined (-0.95%), showing reduced foreign investor confidence.
  • Quarterly profit variation (-11.2%) indicates earnings volatility.

📈 Company Positive News

  • DII holding increased (+1.85%), reflecting strong domestic support.
  • PAT growth from 676 Cr. to 916 Cr. shows improving profitability.

🏭 Industry

  • Financial services sector remains a key growth driver in India.
  • Industry P/E at 22.6 suggests sector is moderately valued; ABCAPITAL trades at a premium.

🔎 Conclusion

  • ABCAPITAL shows strong investor interest and PAT growth but faces high debt and valuation risks.
  • Technically, the stock is consolidating near support with oversold RSI, suggesting possible short-term rebound.
  • Entry near 328–333 ₹ is favorable for short-term traders, with exit near 350–360 ₹.
  • Short-term outlook: cautious trading; long-term outlook requires debt reduction and stronger capital efficiency.

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