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AFFLE - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.6

Stock Code AFFLE Market Cap 22,579 Cr. Current Price 1,605 ₹ High / Low 2,187 ₹
Stock P/E 177 Book Value 139 ₹ Dividend Yield 0.00 % ROCE 8.64 %
ROE 6.39 % Face Value 2.00 ₹ DMA 50 1,705 ₹ DMA 200 1,759 ₹
Chg in FII Hold -1.23 % Chg in DII Hold 1.68 % PAT Qtr 36.7 Cr. PAT Prev Qtr 30.0 Cr.
RSI 39.0 MACD -50.2 Volume 8,43,291 Avg Vol 1Wk 3,58,726
Low price 1,221 ₹ High price 2,187 ₹ PEG Ratio 6.60 Debt to equity 0.00
52w Index 39.8 % Qtr Profit Var 25.4 % EPS 9.05 ₹ Industry PE 25.7

📈 Technical Analysis

  • Chart Patterns: Price (1,605 ₹) is below both 50 DMA (1,705 ₹) and 200 DMA (1,759 ₹), showing weakness.
  • Moving Averages: Downward bias as stock trades under key averages.
  • RSI: At 39.0, approaching oversold territory, potential rebound signal.
  • MACD: Negative (-50.2), bearish crossover persists.
  • Bollinger Bands: Price near lower band, support seen around 1,580–1,600 ₹.
  • Volume Trends: Current volume (8.43L) is higher than 1-week average (3.58L), showing increased activity despite weakness.

🎯 Momentum & Trade Zones

  • Support Levels: 1,580–1,600 ₹ (near Bollinger lower band), 1,221 ₹ (recent low).
  • Resistance Levels: 1,705 ₹ (50 DMA), 1,759 ₹ (200 DMA), 1,800 ₹ (psychological barrier).
  • Entry Zone: 1,580–1,610 ₹ (accumulation near support).
  • Exit Zone: 1,700–1,750 ₹ (near resistance cluster).
  • Trend: Consolidating with bearish bias; reversal possible if price sustains above 1,705 ₹.

✅ Positive

  • Quarterly PAT growth (36.7 Cr. vs 30.0 Cr.) shows improving profitability.
  • DII holdings increased (+1.68%), showing domestic institutional confidence.
  • Debt-to-equity ratio at 0.00, indicating no leverage risk.
  • 52-week index return of 39.8% shows strong long-term performance.

⚠️ Limitation

  • Extremely high P/E (177) compared to industry average (25.7) suggests overvaluation.
  • Low ROCE (8.64%) and ROE (6.39%) reflect weak efficiency.
  • Dividend yield is 0.00%, no income support for investors.
  • PEG ratio (6.60) indicates expensive growth prospects.

📉 Company Negative News

  • FII holdings decreased (-1.23%), showing reduced foreign investor confidence.
  • Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.

📊 Company Positive News

  • Quarterly profit variance at 25.4% highlights earnings momentum.
  • EPS growth (9.05 ₹) supports valuation expansion if sustained.

🏭 Industry

  • Industry P/E at 25.7, much lower than company’s 177, suggesting sector peers may be more attractively priced.
  • Digital advertising and technology sector growth remains strong, driven by mobile and online demand.

📝 Conclusion

  • AFFLE is consolidating with bearish bias but showing signs of potential rebound (RSI near oversold).
  • Optimal entry near 1,580–1,610 ₹ with exit around 1,700–1,750 ₹.
  • Strong revenue growth but high valuation and weak efficiency metrics limit upside.
  • Medium-term investors should wait for breakout above 1,705 ₹ to confirm trend reversal.

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