ABFRL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | ABFRL | Market Cap | 7,230 Cr. | Current Price | 59.3 ₹ | High / Low | 106 ₹ |
| Book Value | 66.8 ₹ | Dividend Yield | 0.00 % | ROCE | -0.17 % | ROE | -3.01 % |
| Face Value | 10.0 ₹ | DMA 50 | 67.5 ₹ | DMA 200 | 77.0 ₹ | Chg in FII Hold | -0.26 % |
| Chg in DII Hold | -0.17 % | PAT Qtr | -38.9 Cr. | PAT Prev Qtr | -90.9 Cr. | RSI | 32.0 |
| MACD | -2.91 | Volume | 96,10,418 | Avg Vol 1Wk | 54,67,754 | Low price | 57.5 ₹ |
| High price | 106 ₹ | Debt to equity | 0.45 | 52w Index | 3.60 % | Qtr Profit Var | -17.4 % |
| EPS | -0.77 ₹ | Industry PE | 26.7 |
📉 Chart & Trend: Current price (59.3 ₹) is below both 50 DMA (67.5 ₹) and 200 DMA (77.0 ₹), confirming strong downtrend and bearish bias.
📊 RSI: At 32.0, RSI is oversold, suggesting weak buying strength but potential for a short-term bounce.
📉 MACD: Negative (-2.91), indicating bearish crossover and weak momentum.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions but no confirmed reversal yet.
📉 Volume: Current volume (96,10,418) is higher than 1-week average (54,67,754), showing increased participation, likely driven by selling pressure.
📍 Support Levels: 57.5 ₹ (near-term), 55 ₹ (major support), 50 ₹ (long-term support).
📍 Resistance Levels: 65 ₹ (near-term), 70 ₹ (major resistance), 77 ₹ (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
- Book value of 66.8 ₹ provides margin of safety.
- Debt-to-equity ratio (0.45) is moderate, ensuring manageable leverage.
- Sequential improvement in PAT (-90.9 Cr. to -38.9 Cr.) shows narrowing losses.
Limitation
- Stock trading well below both 50 DMA and 200 DMA, confirming bearish trend.
- Dividend yield is 0.00%, offering no income support.
- Negative ROCE (-0.17%) and ROE (-3.01%) highlight poor efficiency.
- 52-week index performance only 3.60%, showing very weak relative strength.
Company Negative News
- Quarterly losses continue despite improvement, PAT still negative (-38.9 Cr.).
- EPS remains negative (-0.77 ₹), reflecting weak profitability.
- FII holding reduced (-0.26%) and DII holding reduced (-0.17%), showing declining institutional confidence.
Company Positive News
- Sequential improvement in quarterly losses indicates operational recovery efforts.
- Moderate debt-to-equity ratio (0.45) provides financial stability.
Industry
- Industry P/E at 26.7 highlights valuation benchmark, but company remains loss-making.
- Retail and apparel sector remains cyclical, dependent on consumer demand recovery.
Conclusion
⚠️ ABFRL is in a bearish reversal, trading below key moving averages with negative MACD and oversold RSI. Entry is only favorable near strong support zones (57–59 ₹) with strict stop-loss at 55 ₹. Exit zones lie around 65–70 ₹ if momentum recovers. Fundamentals show narrowing losses and manageable debt, but weak efficiency ratios, negative EPS, and declining institutional confidence raise caution. Traders should avoid aggressive positions until reversal signals appear; long-term investors may accumulate gradually only if profitability stabilizes.