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ABFRL - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.8

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

Technical Rating: 2.8

Stock Code ABFRL Market Cap 7,815 Cr. Current Price 64.0 ₹ High / Low 106 ₹
Book Value 66.8 ₹ Dividend Yield 0.00 % ROCE -0.17 % ROE -3.01 %
Face Value 10.0 ₹ DMA 50 73.2 ₹ DMA 200 81.0 ₹ Chg in FII Hold -0.26 %
Chg in DII Hold -0.17 % PAT Qtr -90.9 Cr. PAT Prev Qtr -59.9 Cr. RSI 35.8
MACD -3.29 Volume 23,48,080 Avg Vol 1Wk 89,17,394 Low price 59.8 ₹
High price 106 ₹ Debt to equity 0.45 52w Index 9.14 % Qtr Profit Var 34.5 %
EPS 0.00 ₹ Industry PE 43.7

📊 Technical Analysis

  • Chart Patterns: Current price (64 ₹) is below both 50 DMA (73.2 ₹) and 200 DMA (81.0 ₹), confirming bearish momentum and weak technical structure.
  • RSI (35.8): Near oversold zone, suggesting potential for a short-term bounce but overall weakness.
  • MACD (-3.29): Negative crossover indicates continuation of bearish trend.
  • Bollinger Bands: Price near lower band, showing oversold conditions but risk of breakdown if selling persists.
  • Volume Trends: Current volume (23.5L) is well below 1-week average (89.1L), reflecting weak participation and lack of strong buying interest.

📈 Momentum & Signals

  • Trend: Bearish reversal.
  • Support Zones: 62 ₹ (near-term support), 59.8 ₹ (recent low), 55 ₹ (major support).
  • Resistance Zones: 73 ₹ (50 DMA), 81 ₹ (200 DMA), 90 ₹ (psychological resistance).
  • Entry Zone: 60–64 ₹ only for short-term traders looking for oversold bounce.
  • Exit Zone: 70–75 ₹ unless strong reversal above 81 ₹ occurs.

✅ Positive

  • Book value of 66.8 ₹ provides some valuation support.
  • Debt-to-equity ratio of 0.45 indicates moderate leverage.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, confirming bearish technical setup.
  • Negative ROCE (–0.17%) and ROE (–3.01%) highlight poor efficiency.
  • Dividend yield is 0.00%, limiting income appeal.

📉 Company Negative News

  • Quarterly PAT in loss (–90.9 Cr. vs –59.9 Cr.), showing worsening financials.
  • FII holding decreased (–0.26%) and DII holding decreased (–0.17%), reflecting reduced investor confidence.
  • Weak 52-week performance (Index 9.14%), showing poor relative strength.

📈 Company Positive News

  • Stable book value provides some cushion against downside.
  • Debt levels remain manageable compared to peers.

🏭 Industry

  • Industry P/E at 43.7 is high, highlighting ABFRL’s weak earnings relative to sector valuation.
  • Retail and apparel sector benefits from long-term consumption growth but faces cyclical demand pressures.

🔎 Conclusion

  • Stock is in a bearish reversal phase.
  • RSI oversold and MACD negative suggest caution; only short-term bounce possible.
  • Best strategy: Accumulate cautiously near 60–64 ₹ with strict stop-loss below 59.8 ₹.
  • Upside limited to 70–75 ₹ unless strong reversal above 81 ₹ occurs.

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