ABFRL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.8

Technical Analysis Report

• Trend Status: Consolidating with bearish undertone
• Moving Averages: Price (₹85.3) is slightly above 50 DMA (₹83.6) but below 200 DMA (₹86.7), indicating weak long-term structure
• RSI (43.3): Neutral to weak momentum
• MACD (-0.66): Bearish crossover, suggesting short-term weakness
• Bollinger Bands: Price near mid-band, indicating lack of volatility or breakout signal
• Volume: Below average (29.1L vs 39.8L), showing low conviction
• Support Zones: ₹80, ₹76
• Resistance Zones: ₹88, ₹92
• Entry Zone: ₹80–₹83 (near support)
• Exit Zone: ₹88–₹92 (near resistance)

Positive

• Price holding above 50 DMA suggests short-term support
• FII holding increased by 0.99%, indicating foreign investor interest
• Debt-to-equity ratio of 0.41 reflects moderate leverage

Limitation

• MACD in negative territory signals short-term bearishness
• Price below 200 DMA indicates weak long-term trend
• Volume below average, showing lack of investor interest

Company Negative News

• Quarterly PAT worsened from ₹-21.9 Cr to ₹-59.9 Cr
• DII holding declined by 4.07%, indicating reduced domestic institutional confidence
• Negative ROCE (-0.17%) and ROE (-3.01%) reflect poor profitability

Company Positive News

• Quarterly profit variation of +42.3% shows relative improvement despite losses
• Stock has gained 33.0% from its 52-week low

Industry

• Apparel and retail sector remains volatile amid changing consumer trends and cost pressures
• Industry P/E of 40.7 suggests ABFRL trades below sector average due to earnings pressure

Conclusion

• ABFRL is in a consolidation phase with weak technical indicators
• Entry near ₹80–₹83 may offer speculative upside if volume and MACD improve
• Exit near ₹88–₹92 is ideal for short-term trades
• Investors should monitor earnings recovery and institutional flows for trend confirmation