AIIL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns & Trend: AIIL is consolidating after a strong rally toward its 52-week high of 3,319 ₹. The current price (2,904 ₹) is above both 50 DMA (2,786 ₹) and 200 DMA (2,557 ₹), indicating medium-term strength but short-term weakness due to declining momentum.

📈 Moving Averages:

- Price above 50 DMA and 200 DMA shows bullish undertone.

- However, MACD negative suggests near-term consolidation rather than breakout.

📉 RSI: At 49.1, RSI is neutral, neither overbought nor oversold. Momentum is balanced.

📉 MACD: Negative (-31.2), signaling bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with no immediate breakout.

📊 Volume Trends: Current volume (37,779) is significantly below 1-week average (1,33,188), showing reduced participation and lack of strong momentum.

🎯 Entry Zone: 2,850–2,880 ₹ (near 50 DMA support).

🎯 Exit Zone: 3,150–3,200 ₹ (near resistance trendline).

⚡ Support Levels: 2,786 ₹ and 2,557 ₹.

⚡ Resistance Levels: 3,200 ₹ and 3,319 ₹.

Positive

• Strong ROE (34.1%) and ROCE (30.8%) indicate efficient capital use.
• EPS of 237 ₹ supports long-term earnings visibility.
• Low debt-to-equity ratio (0.17) ensures financial stability.
• FII holdings increased significantly (+6.17%), showing foreign investor confidence.

Limitation

• Quarterly PAT declined from 941 Cr. to 765 Cr. (-9.38%).
• Dividend yield is very low (0.04%).
• Volume participation is weak compared to average.
• MACD bearish crossover indicates short-term weakness.

Company Negative News

• Decline in quarterly profits raises concerns about earnings momentum.
• Short-term technical weakness with MACD negative and low trading volumes.

Company Positive News

• Strong fundamentals with high ROE and ROCE.
• FII inflows (+6.17%) reflect renewed investor interest.
• Stock trading well above long-term averages (200 DMA), showing resilience.

Industry

• Industry P/E at 21.2, higher than AIIL’s P/E of 12.2, suggesting undervaluation.
• Sector outlook remains strong with cyclical demand recovery.

Conclusion

⚖️ AIIL is consolidating with neutral RSI and bearish MACD, but strong fundamentals and FII inflows provide long-term support. Short-term traders may consider entry near 2,850–2,880 ₹ with exits around 3,150–3,200 ₹. The stock is currently consolidating, awaiting volume confirmation for a breakout above 3,200 ₹.