ABSLAMC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

Technical Analysis Report

• Trend Status: Reversing downward
• Moving Averages: Price (₹768) is below both 50 DMA (₹825) and 200 DMA (₹777), indicating bearish alignment
• RSI (30.4): Approaching oversold zone, potential for reversal
• MACD (-10.6): Bearish crossover, confirming downward momentum
• Bollinger Bands: Price near lower band, suggesting possible short-term bounce
• Volume: Below average (3.08L vs 3.56L), showing weak participation
• Support Zones: ₹740, ₹710
• Resistance Zones: ₹790, ₹825
• Entry Zone: ₹740–₹755 (oversold support)
• Exit Zone: ₹790–₹825 (near resistance)

Positive

• Strong ROCE (35.5%) and ROE (27.0%) indicate excellent operational efficiency
• Dividend yield of 3.15% offers attractive passive income
• FII holding increased by 0.66%, showing foreign investor confidence
• Low debt-to-equity ratio (0.02) reflects financial prudence

Limitation

• Price below both 50 and 200 DMA confirms bearish trend
• MACD and RSI indicate weak momentum and oversold conditions
• Volume below average, suggesting lack of strong buying interest

Company Negative News

• Quarterly PAT declined from ₹277 Cr to ₹245 Cr
• DII holding dropped by 0.50%, reflecting cautious domestic sentiment

Company Positive News

• EPS of ₹33.7 supports strong earnings profile
• Stock has gained 59.5% from its 52-week low

Industry

• Asset management sector remains resilient with long-term growth potential
• Industry P/E of 30.3 suggests ABSLAMC trades at a discount

Conclusion

• ABSLAMC is in a bearish reversal phase with oversold signals emerging
• Entry near ₹740–₹755 could offer a tactical bounce opportunity
• Exit near ₹790–₹825 is ideal for short-term gains
• Investors should monitor RSI and MACD for confirmation of a trend reversal