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ASHOKLEY - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 28 May 26, 06:35 pm

Technical Rating: 3.8

Stock Code ASHOKLEY Market Cap 96,061 Cr. Current Price 164 ₹ High / Low 215 ₹
Stock P/E 26.1 Book Value 19.6 ₹ Dividend Yield 1.91 % ROCE 36.5 %
ROE 31.4 % Face Value 1.00 ₹ DMA 50 167 ₹ DMA 200 161 ₹
Chg in FII Hold 0.16 % Chg in DII Hold -0.67 % PAT Qtr 1,026 Cr. PAT Prev Qtr 801 Cr.
RSI 51.9 MACD -2.58 Volume 2,30,54,837 Avg Vol 1Wk 2,48,31,482
Low price 115 ₹ High price 215 ₹ PEG Ratio 0.06 Debt to equity 0.12
52w Index 48.4 % Qtr Profit Var 34.7 % EPS 5.80 ₹ Industry PE 28.7

📊 Chart Patterns: ASHOKLEY is consolidating between ₹160–₹175, with resistance near 50 DMA (₹167) and support around 200 DMA (₹161). Trendlines suggest sideways movement after recent weakness.

📈 Moving Averages: Current price (₹164) is below 50 DMA (₹167) but slightly above 200 DMA (₹161), showing short-term weakness but medium-term support.

📊 RSI: At 51.9, RSI indicates neutral momentum, neither overbought nor oversold.

📉 MACD: Negative at -2.58, confirming bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is mid-band, suggesting consolidation with limited volatility.

📊 Volume Trends: Current volume (2,30,54,837) is slightly below 1-week average (2,48,31,482), showing reduced participation and weak accumulation.

🚀 Momentum Signals: Mild bearish bias, with potential rebound if price sustains above ₹167.

🎯 Entry Zone: ₹160–₹165 (near 200 DMA support).

🎯 Exit Zone: ₹175–₹180 (resistance zone and upper Bollinger band).

📌 Trend Status: Consolidating with weak bullish bias.

Positive

  • Strong ROCE (36.5%) and ROE (31.4%) highlight excellent capital efficiency.
  • EPS at ₹5.80 supports earnings visibility.
  • PEG ratio at 0.06 indicates attractive growth valuation.
  • Quarterly PAT improved from ₹801 Cr. to ₹1,026 Cr. (+28%), showing earnings momentum.

Limitation

  • Price trading below 50 DMA reflects short-term weakness.
  • MACD negative crossover indicates bearish momentum.
  • Book value (₹19.6) is relatively low compared to current price.
  • DII holdings decreased (-0.67%), showing reduced domestic institutional support.

Company Negative News

  • Institutional selling from DIIs signals cautious sentiment.

Company Positive News

  • Quarterly profit variation (+34.7%) highlights strong operational performance.
  • FII holdings increased (+0.16%), reflecting foreign investor confidence.
  • Dividend yield of 1.91% adds shareholder value.

Industry

  • Industry PE at 28.7 is slightly higher than ASHOKLEY’s PE (26.1), suggesting fair valuation.
  • Auto sector outlook remains resilient with demand recovery supporting growth.

Conclusion

ASHOKLEY is consolidating with mild bullish signals supported by RSI and medium-term support at 200 DMA. Entry near ₹160–₹165 offers limited upside toward ₹175–₹180. Strong fundamentals and attractive valuation support medium-term growth, but short-term weakness and reduced DII participation require cautious accumulation until momentum indicators turn positive.

This can be extended into a auto sector consolidation template with benchmarking overlays, so you can compare ASHOKLEY against peers like TATAMOTORS and EICHERMOT for relative strength.

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