AFCONS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns: The stock is trading below both its 50 DMA (414 ₹) and 200 DMA (436 ₹), indicating a bearish trend. Current price (381 ₹) is near support at 376 ₹, with resistance around 414–436 ₹.

📈 Moving Averages: Short-term momentum is weak as price remains under key averages. A crossover above 414 ₹ could signal recovery.

📉 RSI: At 33.0, the stock is approaching oversold territory, suggesting potential for a short-term bounce.

📉 MACD: Negative at -8.50, confirming bearish momentum and lack of immediate upward strength.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (2,95,051) is higher than average weekly volume (2,41,031), showing increased activity near support levels.

📌 Momentum Signals: Short-term bounce possible from 376 ₹ support, but trend remains weak unless price sustains above 414–436 ₹.

🎯 Entry Zone: 376–385 ₹ (near support, oversold RSI).

🎯 Exit Zone: 414–436 ₹ (resistance at moving averages).

🔎 Trend Status: Currently consolidating with bearish bias. A reversal requires sustained move above 436 ₹.

Positive

• Strong ROCE (22.5%) and ROE (14.9%) indicate efficient capital use.
• PEG ratio of 0.77 suggests reasonable valuation compared to growth.
• DII holdings increased (+3.41%), showing domestic institutional confidence.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• Quarterly profit declined (-20.2%).
• FII holdings reduced (-2.99%), showing weak foreign sentiment.

Company Negative News

• Recent quarterly PAT dropped from 136 Cr. to 112 Cr.
• Profitability under pressure despite strong industry demand.

Company Positive News

• Stable dividend yield (0.65%) provides income support.
• Strong execution capabilities reflected in consistent revenue base.

Industry

• Industry PE at 18.8, lower than company PE (23.7), suggesting premium valuation.
• Infrastructure sector outlook remains positive with government spending push.

Conclusion

⚖️ AFCONS is currently consolidating near support with weak momentum. Short-term traders may consider entry near 376–385 ₹ with exit around 414–436 ₹. Long-term investors should watch for sustained reversal above 436 ₹ before fresh accumulation.