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AIIL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

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

Technical Rating: 3.5

Stock Code AIIL Market Cap 43,268 Cr. Current Price 510 ₹ High / Low 684 ₹
Stock P/E 10.8 Book Value 191 ₹ Dividend Yield 0.04 % ROCE 30.8 %
ROE 34.1 % Face Value 1.00 ₹ DMA 50 572 ₹ DMA 200 530 ₹
Chg in FII Hold 0.37 % Chg in DII Hold -0.07 % PAT Qtr 765 Cr. PAT Prev Qtr 941 Cr.
RSI 32.0 MACD -21.9 Volume 1,40,039 Avg Vol 1Wk 6,35,486
Low price 265 ₹ High price 684 ₹ PEG Ratio 0.13 Debt to equity 0.17
52w Index 58.4 % Qtr Profit Var -9.38 % EPS 47.3 ₹ Industry PE 19.0

📈 Technical Analysis

  • Chart Patterns: Price is below 50 DMA (572 ₹) and slightly below 200 DMA (530 ₹), showing weakness.
  • Moving Averages: Current price (510 ₹) is under both DMAs, indicating bearish bias.
  • RSI: At 32.0, approaching oversold territory, suggesting potential rebound.
  • MACD: Negative (-21.9), confirming bearish momentum.
  • Bollinger Bands: Price is near lower band, showing oversold conditions.
  • Volume Trends: Current volume (1,40,039) is far below 1-week average (6,35,486), indicating weak participation.

📊 Momentum & Trend

  • Short-term Momentum: Bearish with RSI weak and MACD negative.
  • Support Zone: 500 ₹ – 510 ₹ (near current levels).
  • Resistance Zone: 530 ₹ – 540 ₹ (near 200 DMA).
  • Trend: Consolidating with bearish bias.
  • Optimal Entry: Around 500 ₹ – 510 ₹ if support holds.
  • Optimal Exit: Around 530 ₹ – 540 ₹ unless breakout occurs.

✅ Positive

  • Strong ROCE (30.8%) and ROE (34.1%).
  • Low debt-to-equity (0.17), showing financial stability.
  • Attractive PEG ratio (0.13), suggesting undervaluation relative to growth.

⚠️ Limitation

  • Quarterly PAT declined (765 Cr vs 941 Cr), showing earnings pressure.
  • Dividend yield is very low (0.04%).
  • Current price below both DMAs, indicating weak technical strength.

📉 Company Negative News

  • DII holding decreased (-0.07%), showing reduced domestic institutional confidence.
  • Quarterly profit variation (-9.38%) highlights operational slowdown.

📈 Company Positive News

  • FII holding increased (+0.37%), showing foreign investor interest.
  • EPS of 47.3 ₹, reflecting profitability despite recent decline.

🏭 Industry

  • Industry PE at 19.0, lower than company PE (10.8), suggesting relative undervaluation.
  • Sector remains stable, offering long-term growth potential.

🔎 Conclusion

  • Stock is consolidating with bearish signals but nearing oversold territory.
  • Entry near support (500 ₹ – 510 ₹) could be favorable for short-term rebound trades.
  • Exit near resistance (530 ₹ – 540 ₹) unless breakout confirms reversal.
  • Long-term investors may find value due to strong fundamentals, but short-term weakness persists.

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