ASHOKLEY - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.4

📊 Chart Patterns: ASHOKLEY is trading at its 52-week high (174 ₹), showing strong bullish momentum. Price is well above both the 50 DMA (151 ₹) and 200 DMA (132 ₹), confirming a strong uptrend. Support lies at 165–170 ₹, with resistance at 174 ₹ (current high).

📈 Moving Averages: Price above both short- and long-term averages indicates strong bullish bias. Sustained move above 174 ₹ could trigger fresh breakout.

📉 RSI: At 74.6, RSI is in overbought territory, suggesting caution as short-term pullback is possible.

📈 MACD: Positive at 5.78, confirming bullish momentum and trend continuation.

📊 Bollinger Bands: Price is near the upper band, indicating strong bullishness but also potential overextension.

📊 Volume Trends: Current volume (2,22,18,784) is significantly higher than average weekly volume (1,63,87,369), showing strong buying interest and accumulation.

📌 Momentum Signals: Short-term momentum is strong, but overbought RSI suggests possible consolidation before next breakout.

🎯 Entry Zone: 165–170 ₹ (on pullback near support).

🎯 Exit Zone: 174–180 ₹ (current resistance and breakout zone).

🔎 Trend Status: Currently trending upward with breakout potential. Consolidation may occur before next leg higher.

Positive

• Strong ROCE (36.5%) and ROE (31.4%) highlight excellent capital efficiency.
• Quarterly PAT improved (801 Cr. vs 594 Cr.), showing earnings growth.
• EPS of 5.74 ₹ supports profitability base.
• Low debt-to-equity ratio (0.12) ensures financial stability.

Limitation

• RSI in overbought zone (74.6), suggesting risk of short-term correction.
• DII holdings decreased (-0.29%), showing reduced domestic institutional support.
• Stock P/E (29.8) is below industry PE (40.3), but valuation may still be stretched at highs.

Company Negative News

• Stock at 52-week high may face profit booking pressure.
• Overbought RSI increases risk of near-term pullback.

Company Positive News

• Quarterly profit growth (+16.2%) shows strong operational performance.
• FII holdings increased (+0.47%), reflecting foreign investor confidence.
• Dividend yield of 1.83% adds shareholder value.

Industry

• Industry PE at 40.3 is higher than ASHOKLEY’s P/E (29.8), suggesting relatively attractive valuation.
• Automobile and commercial vehicle sector outlook remains strong with demand recovery and infrastructure growth.

Conclusion

⚖️ ASHOKLEY is trending strongly upward, supported by high volume and strong fundamentals. Traders may consider entry on pullbacks around 165–170 ₹ with exit near 174–180 ₹. Long-term investors can hold for extended gains, while monitoring RSI for signs of short-term consolidation.