AFFLE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns: AFFLE is trading below both its 50 DMA (1,757 ₹) and 200 DMA (1,778 ₹), showing weakness. Current price (1,716 ₹) is near short-term support at 1,700–1,710 ₹, with resistance around 1,757–1,778 ₹.

📈 Moving Averages: Price remains under key averages, indicating bearish bias. Sustained move above 1,778 ₹ is required for trend reversal.

📉 RSI: At 44.6, the stock is neither oversold nor overbought, suggesting neutral momentum.

📉 MACD: Negative at -25.1, confirming bearish momentum and lack of strong upward signals.

📊 Bollinger Bands: Price is closer to the lower band, indicating mild oversold conditions and potential for short-term bounce.

📊 Volume Trends: Current volume (3,56,764) is significantly higher than average weekly volume (2,15,634), showing increased activity near support zones.

📌 Momentum Signals: Short-term bounce possible from 1,700 ₹ support, but trend remains weak unless price sustains above 1,757–1,778 ₹.

🎯 Entry Zone: 1,700–1,716 ₹ (near support, volume spike).

🎯 Exit Zone: 1,757–1,778 ₹ (resistance at moving averages).

🔎 Trend Status: Currently consolidating with bearish bias. Reversal requires breakout above 1,778 ₹.

Positive

• Debt-free balance sheet (Debt-to-equity: 0.00).
• Quarterly PAT improved slightly (30.0 Cr. vs 29.7 Cr.).
• FII (+0.60%) and DII (+0.86%) holdings increased, showing institutional confidence.

Limitation

• Extremely high P/E ratio (201) compared to industry PE (31.6).
• Weak ROCE (8.64%) and ROE (6.39%).
• PEG ratio of 7.50 indicates expensive valuation relative to growth.

Company Negative News

• Stock trading below both 50 DMA and 200 DMA, reflecting weak technicals.
• High valuation may limit upside potential in near term.

Company Positive News

• Debt-free structure provides financial stability.
• Quarterly profit growth (+10.2%) shows resilience despite valuation concerns.

Industry

• Industry PE at 31.6 is far lower than AFFLE’s P/E, highlighting premium valuation.
• Digital advertising sector continues to expand with strong demand outlook.

Conclusion

⚖️ AFFLE is consolidating near support with weak momentum. Short-term traders may consider entry around 1,700–1,716 ₹ with exit near 1,757–1,778 ₹. Long-term investors should be cautious due to stretched valuations and wait for sustained breakout above 1,778 ₹ before accumulation.