AMBER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.5

📊 Chart Patterns: AMBER is trading below both its 50 DMA (7,237 ₹) and 200 DMA (7,083 ₹), reflecting weakness. Current price (6,681 ₹) is near support at 6,600–6,650 ₹, with stronger support at 5,235 ₹ and resistance around 7,083–7,237 ₹.

📈 Moving Averages: Price below both averages indicates bearish bias. Sustained move above 7,237 ₹ is required for reversal.

📉 RSI: At 37.2, RSI is near oversold territory, suggesting potential for a short-term bounce but weak overall momentum.

📉 MACD: Deeply negative at -237, confirming strong bearish momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (1,51,992) is lower than average weekly volume (3,18,887), showing reduced participation and cautious sentiment.

📌 Momentum Signals: Short-term bounce possible from 6,600–6,681 ₹ support, but trend remains weak unless price sustains above 7,083–7,237 ₹.

🎯 Entry Zone: 6,600–6,681 ₹ (near support, oversold RSI).

🎯 Exit Zone: 7,083–7,237 ₹ (short-term resistance), extended resistance at 7,500–7,800 ₹.

🔎 Trend Status: Currently bearish and consolidating near support. Reversal requires breakout above 7,237 ₹.

Positive

• Strong institutional support with FII (+2.02%) and DII (+2.38%) holdings increasing.
• EPS of 36.5 ₹ provides earnings base despite recent losses.
• Industry PE (49.3) is much lower than company PE (193), showing sector strength though AMBER trades at a premium.

Limitation

• Extremely high P/E ratio (193) compared to industry PE (49.3), indicating expensive valuation.
• Weak ROCE (11.6%) and ROE (7.63%).
• Debt-to-equity ratio of 0.69 shows moderate leverage.
• Price trading below both 50 DMA and 200 DMA.

Company Negative News

• Quarterly PAT turned negative (-48.7 Cr. vs 68.1 Cr. previously).
• Quarterly profit variation (-263%) highlights severe earnings pressure.

Company Positive News

• Strong institutional buying with both FII and DII increasing stakes.
• EPS remains positive despite recent losses, supporting long-term potential.

Industry

• Industry PE at 49.3 is far lower than AMBER’s P/E, highlighting premium valuation.
• Consumer durables sector outlook remains positive with demand growth, but profitability pressures persist.

Conclusion

⚖️ AMBER is consolidating near support with weak momentum and bearish signals. Traders may consider speculative entry around 6,600–6,681 ₹ with exit near 7,083–7,237 ₹. Long-term investors should be cautious due to stretched valuations and recent losses, waiting for sustained breakout above 7,237 ₹ before accumulation.