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ALOKINDS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.2

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

Technical Rating: 3.2

Stock Code ALOKINDS Market Cap 7,483 Cr. Current Price 15.1 ₹ High / Low 23.5 ₹
Book Value -38.8 ₹ Dividend Yield 0.00 % ROCE -4.09 % ROE %
Face Value 1.00 ₹ DMA 50 15.9 ₹ DMA 200 17.7 ₹ Chg in FII Hold 0.03 %
Chg in DII Hold 0.01 % PAT Qtr -215 Cr. PAT Prev Qtr -207 Cr. RSI 43.9
MACD -0.35 Volume 1,06,80,856 Avg Vol 1Wk 75,61,853 Low price 13.9 ₹
High price 23.5 ₹ 52w Index 12.2 % Qtr Profit Var 11.7 % EPS -1.33 ₹
Industry PE 18.6

📈 Technical Analysis

  • Chart Patterns: Price (15.1 ₹) is below both 50 DMA (15.9 ₹) and 200 DMA (17.7 ₹), showing weakness.
  • Moving Averages: Downward bias as stock trades under short- and long-term averages.
  • RSI: At 43.9, neutral to slightly bearish momentum.
  • MACD: Negative (-0.35), mild bearish crossover.
  • Bollinger Bands: Price near lower band, support seen around 14–15 ₹.
  • Volume Trends: Current volume (1.06 Cr.) is significantly higher than 1-week average (75.6 L), showing strong participation despite weakness.

🎯 Momentum & Trade Zones

  • Support Levels: 14–15 ₹ (near Bollinger lower band), 13.9 ₹ (recent low).
  • Resistance Levels: 15.9 ₹ (50 DMA), 17.7 ₹ (200 DMA), 20 ₹ (psychological barrier).
  • Entry Zone: 14.5–15.2 ₹ (accumulation near support).
  • Exit Zone: 16–17 ₹ (profit booking near resistance).
  • Trend: Consolidating with bearish bias; reversal possible if price sustains above 15.9–17.7 ₹.

✅ Positive

  • FII holdings increased slightly (+0.03%), showing marginal foreign investor confidence.
  • DII holdings increased (+0.01%), reflecting domestic support.
  • High trading volume indicates strong market activity.

⚠️ Limitation

  • Negative book value (-38.8 ₹) reflects weak financials.
  • ROCE (-4.09%) indicates poor capital efficiency.
  • No dividend yield support (0.00%).
  • Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.

📉 Company Negative News

  • Quarterly PAT remains negative (-215 Cr. vs -207 Cr.), showing continued losses.
  • EPS at -1.33 ₹ reflects weak earnings profile.

📊 Company Positive News

  • Quarterly profit variance at 11.7% shows slight improvement despite losses.
  • Marginal increase in institutional holdings (FII +0.03%, DII +0.01%).

🏭 Industry

  • Industry P/E at 18.6, much lower than company’s undefined P/E, suggesting sector peers are more attractively priced.
  • Textiles sector remains volatile, with demand cycles impacting profitability.

📝 Conclusion

  • ALOKINDS is consolidating with bearish bias, supported only by high trading volumes.
  • Optimal entry near 14.5–15.2 ₹ with exit around 16–17 ₹.
  • Weak fundamentals (negative book value, losses, poor ROCE) limit upside potential.
  • Short-term traders may benefit from volume-driven rebounds, but medium-term investors should wait for breakout above 15.9–17.7 ₹ to confirm reversal trend.

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