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AMBER - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.3

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

Technical Rating: 3.3

Stock Code AMBER Market Cap 21,103 Cr. Current Price 6,000 ₹ High / Low 8,626 ₹
Stock P/E 173 Book Value 830 ₹ Dividend Yield 0.00 % ROCE 11.6 %
ROE 7.63 % Face Value 10.0 ₹ DMA 50 6,460 ₹ DMA 200 6,859 ₹
Chg in FII Hold -3.63 % Chg in DII Hold 3.66 % PAT Qtr -48.7 Cr. PAT Prev Qtr 68.1 Cr.
RSI 45.6 MACD -256 Volume 5,94,123 Avg Vol 1Wk 4,58,466
Low price 5,235 ₹ High price 8,626 ₹ PEG Ratio 4.18 Debt to equity 0.69
52w Index 22.6 % Qtr Profit Var -263 % EPS 36.5 ₹ Industry PE 48.4

📈 Technical Analysis

  • Chart Patterns: Price (6,000 ₹) is below both 50 DMA (6,460 ₹) and 200 DMA (6,859 ₹), showing weakness.
  • Moving Averages: Downward bias as stock trades under short- and long-term averages.
  • RSI: At 45.6, neutral momentum with slight bearish tilt.
  • MACD: Strongly negative (-256), bearish crossover persists.
  • Bollinger Bands: Price near lower band, support seen around 5,800–6,000 ₹.
  • Volume Trends: Current volume (5.94L) is above 1-week average (4.58L), showing strong participation despite weakness.

🎯 Momentum & Trade Zones

  • Support Levels: 5,800–6,000 ₹ (near Bollinger lower band), 5,235 ₹ (recent low).
  • Resistance Levels: 6,460 ₹ (50 DMA), 6,859 ₹ (200 DMA), 7,000 ₹ (psychological barrier).
  • Entry Zone: 5,800–6,000 ₹ (accumulation near support).
  • Exit Zone: 6,400–6,700 ₹ (profit booking near resistance).
  • Trend: Consolidating with bearish bias; reversal possible if price sustains above 6,460–6,859 ₹.

✅ Positive

  • ROCE (11.6%) and ROE (7.63%) reflect moderate efficiency.
  • DII holdings increased (+3.66%), showing strong domestic institutional confidence.
  • EPS at 36.5 ₹ supports valuation.
  • 52-week index return of 22.6% highlights long-term resilience.

⚠️ Limitation

  • Extremely high P/E (173) compared to industry average (48.4), suggesting overvaluation.
  • Debt-to-equity ratio at 0.69, moderately leveraged.
  • No dividend yield support (0.00%).
  • Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.

📉 Company Negative News

  • Quarterly PAT turned negative (-48.7 Cr. vs 68.1 Cr.), showing sharp earnings decline.
  • Quarterly profit variance at -263% highlights severe financial pressure.
  • FII holdings decreased (-3.63%), showing reduced foreign investor confidence.

📊 Company Positive News

  • DII holdings surged (+3.66%), reflecting strong domestic support.
  • EPS at 36.5 ₹ provides valuation strength despite weak profitability.

🏭 Industry

  • Industry P/E at 48.4, much lower than company’s 173, suggesting sector peers may be more attractively priced.
  • Consumer durables and electronics sector demand remains steady, driven by seasonal and lifestyle consumption trends.

📝 Conclusion

  • AMBER is consolidating with bearish bias, supported only by strong domestic inflows.
  • Optimal entry near 5,800–6,000 ₹ with exit around 6,400–6,700 ₹.
  • Weak fundamentals (negative PAT, high leverage, extreme valuation) limit upside potential.
  • Medium-term investors should wait for breakout above 6,460–6,859 ₹ to confirm reversal trend.

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