ABFRL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns & Trend: ABFRL is trading below both its 50 DMA (78.7 ₹) and 200 DMA (84.1 ₹), indicating weakness and a bearish undertone. Price action shows consolidation near 75–80 ₹ after a steep correction from highs of 106 ₹, with strong support around 70–72 ₹.

📈 Moving Averages: Current price (76.7 ₹) is below both moving averages, signaling short-term and medium-term weakness.

📉 RSI: At 44.6, RSI is neutral-to-weak, suggesting limited momentum and potential accumulation zone.

📊 MACD: Negative MACD (-1.12) 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 (20.8L) is significantly below 1-week average (67.0L), showing weak participation and lack of conviction in recent moves.

🎯 Entry Zone: 72–77 ₹ (near support and oversold RSI).

🚪 Exit Zone: 85–90 ₹ (resistance near DMA levels).

⚠️ Stop Loss: 70 ₹ (below recent support).

📌 Overall Trend: Consolidating with bearish bias. A reversal requires sustained move above 85 ₹ with strong volume.

Positive

• Book value of 66.8 ₹ provides valuation cushion.
• Debt-to-equity ratio of 0.45 is moderate.
• FII holding increased by 0.99%.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• Negative ROCE (-0.17%) and ROE (-3.01%).
• Dividend yield of 0.00% offers no income cushion.
• EPS at 0.00 ₹ indicates weak profitability.
• Volume participation is weak, limiting breakout potential.

Company Negative News

• DII holding reduced significantly (-4.07%).
• Quarterly PAT loss widened (-59.9 Cr. → -90.9 Cr.).

Company Positive News

• FII holding increased (+0.99%).
• Quarterly profit variation shows improvement in revenue base despite losses (34.5%).

Industry

• Industry PE at 55.9, but company currently has no meaningful P/E due to losses.
• Apparel and retail sector remains competitive with moderate growth outlook.

Conclusion

⚖️ ABFRL is consolidating near support levels with RSI suggesting potential rebound. Entry near 72–77 ₹ offers limited upside unless price breaks above 85–90 ₹ with strong volume. Weak fundamentals and widening losses make cautious accumulation advisable despite moderate institutional support.