ABSLAMC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📊 Chart Patterns & Trend: ABSLAMC is trading near its 50 DMA (765 ₹) and 200 DMA (767 ₹), showing consolidation around these levels. Price action indicates stability near 760–770 ₹ after a correction from highs of 912 ₹, with strong support around 740–750 ₹.

📈 Moving Averages: Current price (763 ₹) is aligned with both moving averages, suggesting sideways consolidation with potential breakout if volume strengthens.

📉 RSI: At 65.6, RSI is in the higher range, indicating mild overbought conditions and caution for fresh entry.

📊 MACD: Positive MACD (1.46) suggests bullish momentum, supporting continuation of the uptrend.

📊 Bollinger Bands: Price is near the upper band, showing strength but also risk of short-term pullback.

📊 Volume Trends: Current volume (10.9L) is significantly above 1-week average (5.9L), showing strong participation and accumulation interest.

🎯 Entry Zone: 740–760 ₹ (near support and DMA levels).

🚪 Exit Zone: 800–850 ₹ (resistance zone).

⚠️ Stop Loss: 730 ₹ (below support).

📌 Overall Trend: Consolidating with bullish bias. Sustained move above 770–780 ₹ with volume could extend rally towards 850 ₹.

Positive

• Strong ROCE (35.5%) and ROE (27%).
• Low debt-to-equity ratio (0.02).
• Dividend yield of 3.06% provides income cushion.
• EPS of 33.7 ₹ indicates earnings stability.
• FII holding increased (+0.66%).

Limitation

• Stock trading near resistance levels, limiting immediate upside.
• High RSI (65.6) indicates mild overbought conditions.
• PEG ratio of 1.91 suggests valuation is stretched relative to growth.

Company Negative News

• DII holding reduced by -0.50%.
• PAT declined from 277 Cr. to 245 Cr. (-11.5%).

Company Positive News

• Quarterly profit variation of +1.39% shows stability despite decline in absolute PAT.
• Strong institutional support with FII inflows (+0.66%).

Industry

• Industry PE at 28.5, slightly higher than company’s P/E of 22.7, making ABSLAMC relatively undervalued.
• Asset management sector remains competitive with steady growth outlook.

Conclusion

⚖️ ABSLAMC is consolidating near its DMA levels with bullish signals supported by MACD and volume. Entry near 740–760 ₹ offers favorable risk-reward, with resistance at 800–850 ₹. Strong fundamentals and dividend yield provide resilience, though high RSI suggests caution for fresh buying.